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Shriram EPC bags Rs 292-cr orders, net plunges in Q3

New Delhi : Chennai-based Shriram EPC has bagged three water supply projects worth Rs 292 crore in Jharkhand even as the company has seen massive erosion in profit in the quarter ended December 2018. The fall in profit was despite rise in net sales for the company during the quarter as well as nine-month period.

The company said the three engineering, procurement and construction (EPC) orders are to be executed within 36 months including three months trial run. The operations and maintenance (O&M) services are to be undertaken for a further period of five years. The orders have been received from the state's drinking water & sanitation department (DWSD).

The scope of work of the EPC orders involves detailed survey, design and drawing, construction of RCC intake well cum pump house, supplying and laying raw water rising main, supplying and installing centrifugal pump motor, VT pump motor, construction of staff quarters and connections to rural houses in Ata, Purana Chaibasa, Tantnagar, Madhupur towns on turnkey basis.

“This repeat order wins widen the scale of operations and presence in India and adds to order backlog", said Shriram EPC MD & CEO T Shivaraman.

“We are excited with the traction in the segment and aim to leverage our presence and track record as we pursue opportunities from urbanisation taking place across the nation,” he added.

The company has reported 20.67 per cent rise in net Sales at Rs 315.31 crore for quarter ended December 2018 on consolidated basis, up from Rs 261.30 crore in December 2017.

However, profit before tax (PBT) plunged 82 per cent to Rs 3.44 crore in December 2018 from Rs 19.54 crore last year while net Profit (PAT) dropped 90.8 per cent to Rs 1.39 crore from Rs 15.10 crore.

EBITDA for the December 2018 quarter was Rs 33.95 crore, down 32.61 per cent from Rs 50.38 crore last year.

For the nine-month period ended December 2018, the company recorded net sales of Rs 713.23 crore on a consolidated basis as against Rs 687.83 crore. Profit before tax (PBT) was Rs 27.15 crore, down from Rs 37.86 crore while profit after tax (PAT) was at Rs 27.43 crore as against Rs 32.63 crore.

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