Patel Engineering has executed a Share Purchase Agreement dated 25 May 2023, with inter alia Authum Investment and Infrastructure Limited (the purchaser), to sell and transfer 41.01% of its equity stake from out of 51% in its subsidiary viz. Michigan Engineers (MEPL) and have also completed the transfer of such shares today.

Further, with this the Company shall also reduce its Corporate Guarantees for facilities taken by MEPL from its lenders of Rs.176 crore.

Hence, MEPL cease to be subsidiary of the Company.

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Net profit of Patel Engineering rose 123.30% to Rs 84.81 crore in the quarter ended March 2023 as against Rs 37.98 crore during the previous quarter ended March 2022. Sales rose 16.77% to Rs 1298.03 crore in the quarter ended March 2023 as against Rs 1111.66 crore during the previous quarter ended March 2022.

For the full year,net profit rose 155.37% to Rs 183.48 crore in the year ended March 2023 as against Rs 71.85 crore during the previous year ended March 2022. Sales rose 24.31% to Rs 4201.97 crore in the year ended March 2023 as against Rs 3380.29 crore during the previous year ended March 2022.

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Patel Engineering will hold a meeting of the Board of Directors of the Company on 15 May 2023.

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Patel Engineering is a 51% partner in the Tumkur Branch Canal project, with a share of Rs 158.68 crore, and a 35% share in the Sher Micro Irrigation Project, with a share of Rs 349.56 crore. Both projects were previously declared as L1.

Karnataka-based Tumkur Branch Canal (Package-III) Micro Irrigation Project involves various tasks such as survey, design, supply, installation, testing and commissioning of a gravity bulk feeder, construction of a sump cum pump house, pumping machineries, terminal bay, electrical substation, electric power line, and other relevant works. The project also includes the construction of a pipe distribution network and drip irrigation system with SCADA and automation over an area of 8,150.44 hectares.

Madhya Pradesh-based Sher Micro Irrigation Project will include the survey, investigation, designing, and construction of four dams with all ancillary works, including rising/gravity main and pipe distribution network works.

The total value of both contracts is Rs 1,309.88 crore. The Tumkur Branch Canal (Package-III) project is expected to be completed within 24 months, while the Sher Micro Irrigation Project is set to be completed within 60 months. The contracts are on an EPC turnkey basis.

Patel Engineering is a civil construction company that specializes in hydropower and irrigation projects.

The company's consolidated net profit rose 13.5% to Rs 31.19 crore on 18.1% increase in net sales to Rs 1,036.98 crore in Q3 FY23 over Q3 FY22.

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