Shares of Dilip Buildcon Ltd (DBL) broke free from its opening losses and were trading 2% higher on 28 November after the company announced that it had received a Letter of Acceptance from the National Highways Authority of India (NHAI) for a Rs 879.30-crore road project in Tamil Nadu.

The contract calls for four-laning the Paramakudi-Ramanathapuram portion of NH-49 (New NH-87), which spans 46.665 kilometres, using the Hybrid Annuity Model. According to DBL, the project would take 24 months to complete, followed by 15 years of operations and maintenance.

The project is expected to improve communication along a key route in southern Tamil Nadu. This is the company’s second large order victory this month. 

Earlier, in November, the Bhopal-based infrastructure developer received a Rs 5,000-crore mining and infrastructure contract from National Aluminium Company Ltd. (NALCO) to develop and run a bauxite mine for 25 years. The first three years will be dedicated to engineering, procurement, and construction, with mining operations continuing for the next 22 years.

Dilip Buildcon reported a poorer September quarter, with net profit decreasing 22.8% to Rs 182 crore from Rs 235 crore last year. Revenue fell 21.8% year-on-year to Rs 1,925 crore, indicating poorer project completion. 

At 3:30 pm, the shares of Dilip Buildcon closed 1.06% higher at Rs 475.50 on NSE.

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