ITD Cementation Secures ₹3,290 Crore Marine Contract, Shares Surge to All-Time High

ITD Cementation share price witnessed a remarkable surge of over 13%, reaching an all-time high of ₹246.50 on the National Stock Exchange (NSE) in early trade on Friday, September 1. This substantial increase came in the wake of the company's announcement that it had secured a marine contract worth ₹3,290 crore. The previous day, ITD Cementation's shares had closed at ₹217.35. This development marks a significant milestone for ITD Cementation India Limited, a leading engineering and construction firm, as it continues its impressive financial journey.

Marine Contract Worth ₹3,290 Crore

ITD Cementation India Limited officially confirmed the acquisition of a marine contract worth approximately ₹3,290 crore, excluding GST. This announcement was made through a regulatory filing by the company's Board. The contract's substantial value propelled the company's shares to new heights, sparking investor excitement and confidence in the company's growth prospects.

Share Price Performance

ITD Cementation India Limited has been a standout performer in the stock market over the past year, offering investors impressive returns of around 114%. In the current year alone, the stock has delivered a positive return of 85%, underlining its consistent upward trajectory. Notably, the stock has surged by 31% in just one month and has yielded a remarkable multibagger return of 133%  over the past six months.

Dividend Declarations

In addition to its robust financial performance, ITD Cementation India Limited had previously announced a dividend of Re 0.75 per equity share of face value of ₹1 each for the financial year ended March 31, 2023. This dividend declaration in August 2023 followed a dividend of ₹0.45 per share in September 2022.

Remarkable Financial Performance

ITD Cementation India's remarkable financial performance was evident in its highest-ever quarterly revenue of ₹1,833 crore for the June-ended quarter (Q1FY24), marking a substantial 67% increase over the previous year's corresponding quarter. The company's profit after tax (PAT) also registered an impressive 73% year-on-year (YoY) increase, reaching ₹52 crore. The company's consolidated order book stood strong at ₹18,517 crore at the end of Q1FY24.

Future Outlook

In light of the government's enhanced push towards infrastructure development, as reflected in the Union Budget 2023-24, ITD Cementation India is well-positioned to seize upcoming opportunities in the sector. The company expressed its commitment to maintaining a sharp focus on efficient capital allocation, order book quality, diversified clientele, geographic expansion, talent investment, adoption of advanced technologies, and operational efficiency to deliver robust performance and long-term business value. The company's reputation for excellence in project execution has solidified its position as one of the preferred contractors in the infrastructure sector.

Recent International Contract

It is worth noting that, on August 10, ITD Cementation India, in collaboration with Transrail Lighting, secured a contract in Bangladesh. This contract involves the design, supply, installation, testing, and commissioning of the Jamuna river crossing portion of the Bogura-Kaliakair 400 kV double circuit transmission line on a turnkey basis (Package-01, Lot-03) from the Power Grid Company of Bangladesh (PGCB), valued at approximately $205 million, excluding taxes and duties.

Positive Market Sentiment

With healthy Q1 execution and strong order inflow guidance, the company's management revised revenue guidance for FY24 to a range of ₹65 billion to ₹70 billion, with an EBITDA margin close to double digits. FY24E capex is expected to be in the range of ₹1.5 billion to ₹2 billion. ITD Cementation's dominant presence in the urban infrastructure space, coupled with its multinational parentage, has garnered positive sentiments among market analysts.

Conclusion

ITD Cementation India Limited's recent achievement in securing a substantial marine contract has propelled its shares to new heights, reflecting its impressive financial performance and strong market positioning. With a robust order book, strategic international contracts, and a commitment to excellence, the company is well-positioned for future growth in India's infrastructure sector.