Shriram EPC surged 11%

Shriram EPC is among the top five gainers on the BSE currently. The stock price surged 11% to Rs.20.50 and remains firmly in the green. Its 20% UC for today is at Rs.22.20.

The financial results for Q4FY18 were not good – it reported a 68% (YoY) drop in net revenue at Rs.141 crore and a net loss of Rs.35 crore v/s profit of Rs.1.38 crore (YoY) and Rs.15 crore (QoQ).

For FY18, its loss has come down to Rs.2 crore from loss of Rs.137 crore in FY17.

More than the numbers, the market was enthused with resolution of an ongoing dispute with its customer in Basra, Iraq. As a result of this, the order of US$ 230 million has been restored to its JV (50:50).

This order is to be executed by the JV over the next 3 years in partnership with a local Iraqi Company. With the resolution of the above dispute and the ongoing implementation of the other overseas contracts in Oman and Tanzania as well as the continued focus of the Indian Government on infrastructure development, the company can look forward to some optimistic times.

The company has stated that it has an order backlog of over Rs 2,600 crore.