Shares of Indian Hume Pipe Company, which specializes in manufacturing, laying, and joining pipelines, surged 14.2 per cent in early morning trade today. After securing a significant order, the company reached an all-time high of ₹613.70 per share.
In an exchange filing on Saturday, the company announced that it had received a Letter of Intent for an order worth ₹858.88 crore from the Tapi Irrigation Development Corporation, Jalgaon (Dhule Irrigation Project Circle), Maharashtra.
The order involves the execution of work on Engineering, Procurement, and Construction (EPC) and the trial, testing, and commissioning of a gravity-piped distribution network to irrigate a 26,907-hectare command area of Jamphal Dam.
According to the company’s statement, the project also includes operating and maintaining the entire system for five years.
For the June-ending quarter (Q1FY25), the company reported a total income of ₹365.61 crore, compared to ₹349.55 crore in the corresponding quarter of the previous year. It posted an EBITDA of ₹259.57 crore and a net profit of ₹231.16 crore, up from ₹231.70 crore and ₹28.51 crore, respectively, in the same quarter last year.
Hume Pipe Company specializes in manufacturing, laying, and joining pipelines made from various materials such as RCC pipes, steel pipes, prestressed concrete pipes, penstock pipes, bar-wrapped steel cylinder pipes (BWSC), and prestressed concrete cylinder pipes (PCCP). These pipelines support infrastructure development for water, irrigation, sanitation, and sewerage projects.
In addition to its core business, the company undertakes infrastructure development programs by executing turnkey water supply projects. These projects involve managing the entire process from the water source to distribution centres.
This includes constructing intake wells, water sumps, treatment plants, and pumping stations, installing pumping machinery, and handling electromechanical works. The company also manages branch mains, ground-level reservoirs, and elevated reservoirs, ensuring complete water supply systems for various towns and villages across India.
Real estate segment gains momentum
The company has begun monetizing its land parcels, marking a new business segment in FY24. Two phases of a residential real estate project called “Dosti Greenscape,” developed by Dosti Realty Ltd., have been launched on a revenue-sharing basis on the company’s land in Hadapsar, Pune.
The entire project includes 12 residential towers with a total saleable area of approximately 14.77 lakh sq. ft. and a RERA carpet area of about 10.54 lakh sq. ft. Currently, three towers from Phase I and two towers from Phase II have been launched, comprising 507 flats with a RERA carpet area of approximately 4.37 lakh sq. ft. The revenue from the project will be shared in a 38:62 ratio between the company and Dosti Realty Ltd.
As of July 31, 2024, 361 flats with a sale value of ₹270 crore have been booked. According to the payment schedule from flat buyers, the company has received an advance of ₹37.77 crore as part of its share of the revenue, the company said in its Q1FY25 earnings report.
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