J Kumar Infraprojects Ltd’s Joint Venture with NCC Ltd bagged a contract worth over ₹4,548 crore from Brihanmumbai Municipal Corporation for the Mumbai Coastal Road North project. The shares of the company, however, dropped nearly 4% on Friday.
In a filing to the stock exchanges, the company said that its JV entity, Kumar-NCC, has received the Letter of Acceptance (LOA) from BMC.
The project consists of two main components: Package B, which spans from Bangur Nagar to Mindspace Malad Interchange and the GMLR Connector, an Elevated Road.
The project will be completed in 48 months, the company informed the bourses.
In the total ₹4,548.12 crore contract, J Kumar Infra’s share amounts to ₹2,274.06 crore, a 50% stakeholder in the JV entity.
In September 2023, Mumbai-based J Kumar Infraprojects received an order worth ₹6,300 crore from the BMC for its JV entity.
The contract involves the design, construction, and operation of dual tunnels extending from Film City in Goregaon, Mumbai to Khindipada in Mulund. Additionally, the project includes building a box tunnel at Film City, along with relevant electrical and mechanical works.
Kamal Gupta, the Managing Director of J Kumar Infraprojects, said in January that the company is targeting to improve its profit margin to 15-16% over the next six quarters.
The company's operating margin increased 18% to ₹179 crore, elevating the margin to 14.7% in the third quarter from 14.2% in the previous year.
Gupta mentioned that for the fiscal year 2024, the projected orderbook is expected to be in the range of ₹17,000-18,000 crore, exceeding the earlier estimate of ₹15,000-16,000 crore.
Over the past one year, the company's stock has gained around 144%.
At 12:46 PM, shares of JK Infraprojects were trading 1.81% lower at ₹658.85 apiece on BSE.
(Edited by : Asmita Pant)
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