Road Construction Company Wins Major Contract from NHAI on Hyderabad–Visakhapatnam Expressway
National Highways Logistics Management Limited has declared company the highest bidder for a contract to develop, operate, and maintain Wayside Amenities along the Hyderabad–Visakhapatnam Expressway.
NESCO Ltd has announced a significant win. National Highways Logistics Management Limited, a wholly-owned subsidiary of NHAI under the Ministry of Road Transport and Highways, has declared NESCO the highest bidder for a contract to develop, operate, and maintain Wayside Amenities along the Hyderabad–Visakhapatnam Expressway in the Khammam–Devarapalle section. This lease-based contract spans 30 years, with an optional extension of another 30 years. The development phase is slated for completion within 10 months of the appointed date.
The project entails an estimated development cost of Rs 50 crore per site across four locations, with annualized revenues from all sites projected to reach Rs 300 crore starting in the fourth year of operations. The company will pay an annual lease rent of Rs 4.29 crore, subject to adjustments based on WPI and CPI indices.
Q2 FY25 Performance
In the September quarter of FY25, NESCO Limited achieved a revenue of Rs 192 crore, marking a robust growth of 12.2 per cent compared to Rs 175 crore in September FY24. Operating profit for Q2 FY25 stood at Rs 120 crore, an increase of 10.1 per cent over Rs 109 crore in Q2 FY24, maintaining a strong operating margin of 62 per cent. Net profit for the September quarter of FY25 was Rs 107 crore, representing a year-over-year growth of 21.6 per cent compared to Rs 88 crore in Q2 FY24.
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About the Company
Incorporated in 1946, NESCO Ltd is a diversified company involved in multiple businesses, including licensing office spaces in its IT park, leasing exhibition spaces, manufacturing capital equipment, and providing hospitality and catering services. NESCO operates with a focus on delivering cutting-edge solutions across these segments, fostering innovation and quality.
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Disclaimer: The article is for informational purposes only and not investment advice.