Patel Engineering Ltd Share Price – NSE /  BSE

Infrastructure Developers & Operators, Small Cap

The project involves the construction of a pipe line distribution network for the Nira Deoghar Right Bank Main Canal and its distributaries in Kalaj Village, Phaltan Taluka, Satara District, Maharashtra.

The scope of work encompasses excavation and refilling for pipe trenches, the provision and installation of pipes, various types of valves, chambers, and outlets, and the testing of the pipeline with all valves and outlets.

The project also includes a five-year operations, repairs, and maintenance period following project completion.

The project is to be completed in a period of 36 months. It would be executed via a joint venture (JV) and PEL’s share in the JV is 20%.

Patel Engineering is a construction company specializing in the hydropower and irrigation segments. It is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other kinds of heavy civil engineering works.

The company’s consolidated net profit rose 14.49% to Rs 80.42 crore on a 13.61% increase in revenue from operations to Rs 1,205.5 crore in Q3 FY25 as compared with Q3 FY24.

The scrip fell 2.79% to currently trade at Rs 43.28 on the BSE.

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Maharashtra Krishna Valley Development Corporation, Pune has declared Patel Engineering (PEL) along with its JV partner, as L1 for a Rs. 1,090.45 crore contract for the works involving Construction of Pipe Line Distribution Network for Nira Deoghar Right Bank Main Canal Km 87 to Km 135 and its Distributaries, Minors offtaking between Km 65 to Km 135.

The project is to be completed in a period of 36 months.

The said project is located in the state of Maharashtra, Village – Kalaj, Taluka - Phaltan, District – Satara and the project is to be executed in a Joint Venture, of which PEL's share is 20%.

The scope of works includes construction of Pipe Distribution Network involving excavation & refilling for pipe trenches, structures providing, supplying, jointing, lowering, laying of pipes, various types of valves, chambers and outlets, testing Pipeline with all valves, outlets, etc. with an Operations, Repairs and Maintenance period for 5 years after completion of works.

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Net profit of Patel Engineering rose 15.42% to Rs 79.78 crore in the quarter ended December 2024 as against Rs 69.12 crore during the previous quarter ended December 2023. Sales rose 13.62% to Rs 1205.52 crore in the quarter ended December 2024 as against Rs 1061.01 crore during the previous quarter ended December 2023.

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Revenue from operations was at Rs 1,205.5 crore in Q3 FY25, marking a growth of 13.61% compared to Rs 1,061 crore recorded in Q3 FY24.

Profit before tax rose 9% to Rs 89.47 crore in Q3 FY25, compared to Rs 82.08 crore posted in the corresponding quarter previous year.

Operating EBITDA jumped 29.48% YoY to Rs 184 crore in Q2 December 2024. Operating EBITDA margin stood at 15.26% in Q3 FY25, higher than 13.39% in Q3 FY24. The quarter saw significant project progress across key sectors such as hydropower, irrigation, and tunneling, affirming Patel Engineering's commitment to supporting India’s critical infrastructure needs.

The company’s order book as on 31 December 2024 stood at 16,396 crore. As of 31 December 2024, the consolidated gross debt stood at Rs 1,422.4 crore compared to Rs 1885.5 crore as on 31 December 2024.

Kavita Shirvaikar, MD, said, “It gives me great pleasure to announce our Q3FY25 results, which continue to demonstrate our unwavering momentum and operational excellence, with a 13.62% increase in revenue along with significant profitability gains. These achievements highlight our relentless dedication to creating exceptional value for our stakeholders and our strategic focus on optimizing our project pipeline.

We are excited about the future as we continue to execute projects with precision, playing a pivotal role in India's infrastructure development. Looking ahead, we are enthusiastic about enhancing our operational capabilities, expanding our project portfolio, and driving innovation within our industry. The robust foundation we've built over the years fills us with confidence and optimism as we embark on the next phase of growth, consistently delivering outstanding value to our stakeholders.”

Rahul Agrawal, CFO, said, “We are delighted to announce a stellar performance in Q3 FY25, marked by substantial gains across the board in revenue, EBITDA, and net profit. This quarter's success serves as a testament to our strategic financial management and our commitment to maintaining a strong balance sheet.

Our financial health allows us to confidently invest in future promising projects. As we move forward, we are excited about optimizing our capital allocation, adhering to rigorous financial discipline, and ensuring our investments drive long-term value for our shareholders. With a solid financial foundation, we are poised for continued expansion and sustainable growth, paving the way for a prosperous future.”

Patel Engineering is a construction company specializing in the hydropower and irrigation segments. It is engaged in the construction of dams, bridges, tunnels, roads, piling works, industrial structures, and other kinds of heavy civil engineering works.

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