Adani Group’s stock surged by 2 percent following the announcement of its successful bid for a Rs.1,648 crore contract for the development of Vadhvan Port. This strategic project is expected to enhance the group’s presence in the port and logistics sector, contributing to its continued growth and expansion.
Share Price Movement
During Tuesday’s trading session, ITD Cementation India Ltd’s shares reached an intra-day high of Rs.544.85 per share, rising 2.2 percent from the previous closing price of Rs.533.00 apiece. The shares have retreated since then and currently trading at Rs.534.00 per share.
Rationale for the rise
ITD Cementation India Ltd, a subsidiary of Adani Group, has secured an order for near-shore reclamation and shore protection works at the Vadhvan mega port in Maharashtra.
The company won the contract with a bid of Rs. 1,648 crores, which was 6.89 percent lower than the estimated cost of Rs. 1,770 crores (excluding GST) set by Vadhvan Port Project Ltd.
This special purpose vehicle, 74 percent owned by the state-run Jawaharlal Nehru Port Authority and 26 percent by the Maharashtra Maritime Board, is responsible for developing India’s largest port by capacity.
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Latest developments
ITD Cementation India is a leader in maritime structures and engineering projects, including the Delhi and Kolkata metro systems, as well as ports in Tuticorin, Haldia, Mundra, and Vizhinjam.
Maritime structures make up 34.5 percent of its order book, its largest vertical. The company has an existing partnership with Adani in hydel power, marine projects, and the Ganga Expressway toll road.
A few recent orders of ITD Cementation include a Rs.1,082 crore contract for the Dahej LNG Terminal, along with projected orders totaling Rs.8,000-10,000 crore for FY25.
Financial Performance
According to ITD Cementation India Ltd’s latest financial update, revenue increased by 24 percent to Rs.1,991 crore in Q2 FY25 from Rs.1,610 crore in Q2 FY24. The company’s net profit increased 33 percent to Rs.72 crore, from Rs.54 crore in the same period.
Company Profile
ITD Cementation India Ltd is an engineering, procurement, and construction (EPC) company that specializes in a wide range of infrastructure projects, including maritime structures, metro systems, and dams.
Written by – Siddesh S Raskar
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