SPML Infra wins Rs. 47.5 crore arbitration award, stock up

Infrastructure development company, SPML Infra has won an arbitration award worth Rs. 47.5 crore against Jharkhand Urja Utpadan Nigam.

The need for the arbitration arose due to cost overrun during construction, delayed payment and additional expenses incurred due to delays. The claims of the company were upheld by the Arbitrator, the company said in its exchange filing.

According to the terms of the award, if Jharkhand Urja Utpadan Nigam fails to pay the amount immediately then it will have to pay interest at the rate of 18 per cent to SPML Infra.

On the financial front, in the recently concluded quarter (Q2FY19) the company recorded stellar performance. Its standalone revenue doubled to Rs. 414.4 crore in Q2FY19 vs 205.1 crore in Q2FY18. Also, its net profit jumped 70.5 per cent yoy to Rs. 13.9 crore.

In response to this development, the stock of SPML Infra surged almost 3 per cent on the bourses to touch an intraday high of Rs. 53.75 apiece. At 10:57 hours, the stock was trading at the mark of Rs. 53 apiece, up by almost 2.71 per cent from its previous close.