Rs 3,482 Crore: Small-cap Engineering Company Secures Rs 57.23 Crore Order from Mumbai Metro Rail Corporation!

Rs 3,482 Crore: Small-cap Engineering Company Secures Rs 57.23 Crore Order from Mumbai Metro Rail Corporation!

Rakesh Deshmukh

Incorporated in 1986, Vascon Engineers Ltd is a Pune-based company involved in engineering, procurement, and construction (EPC), as well as real estate development. The company has completed over 200 projects, covering a construction area exceeding 50 million square feet. Notable projects include Ruby Mills (Mumbai), Suzlon One Earth (Pune), Symbiosis College (Pune), and the IGI Airport Multilevel Car Parking (New Delhi). Additionally, the company recently secured its first redevelopment project in Mumbai.

Vascon Engineers Ltd has received a Letter of Acceptance worth Rs 57.23 crore (excluding GST) from the Mumbai Metro Rail Corporation Limited, Government of Maharashtra. The contract is for the construction of a commercial building at Kalbadevi (K2) on multiple plots (CS No. 663, 664, 665, 1/665, 666, 667, 669, 671 & 774) in the Bhuleshwar Division, ‘C’ Ward, for the rehabilitation of Metro Line 2/3 Project-Affected Persons (PAPs) at Kalbadevi and Girgaon. The project is awarded on a percentage rate basis and must be completed within 28 months from the receipt of the Letter of Acceptance dated October 10, 2024, which was received on October 11, 2024.

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Today, the company’s shares rallied around 3 per cent and finally closed at around Rs 63.37 and the current market capitalization stands at Rs 1,418 crore. Additionally, the shares have delivered an impressive return of over 130 per cent in the past 2 years.

As per the Quarterly Results, in the Q1 FY25, Vascon Engineers Ltd recorded a revenue of Rs 275.417 crore compared to Rs 204.46 crore. It reported an operating profit of Rs 18.92 crore. The net profit stood at Rs 9.60 crore compared to Rs 11.90 crore. Looking at the annual performance, the company generated a revenue of Rs 1053 crore in FY24 compared to Rs 1019 crore. The operating profit for FY24 was Rs 86 crore with a net profit of Rs 69 crore compared to a profit of Rs 99 crore in FY23.

Disclaimer: The article is for informational purposes only and not investment advice.

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