Power Mech Projects rises on securing water supply contract

Power Mech Projects secured water supply contract from the AP government, informed the company to the bourses on Monday. The total contract price stood at Rs. 1,238.75 crore.

The contract was awarded by the Water Resources Department of AP government and the same is to be completed within a period 24 months.

The company’s order book as on Q3FY19 was at Rs. 6,330 crore which translates to a book-to-bill of 4x on FY18 revenue. This gives strong revenue visibility for the next 3-4 years. The Q3FY19 revenue mix comprises of Erection (31 per cent), Civil (41 per cent), Operation and Maintenance (24 per cent) and electrical work (4 per cent).

Power Mech Projects is an integrated power infrastructure services company. The company's operations include three business lines: Erection Works, Operation & Maintenance (O&M) Services and Civil Works.

Cheering the order win, the stock jumped by 4.5 per cent and made an intraday high of Rs. 985 per share on the BSE. At 14:31, the stock was trading nearly at Rs. 967.70. The stock had hit its 52-week high of Rs. 1,084 on May 14, 2018 and its 52-week low of Rs. 775.35 on October 8, 2018 on the BSE.