Ramky Infrastructure Secures Rs 215 Crore STP Deal

The share price of Ramky Infrastructure surged by 2.79% to Rs 622.40 each after the company reported that the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) awarded a major contract to it. Ramky has been accepted for maintaining the sewage treatment plants (STPs) in the area.

The total value of this contract is pegged at Rs 215.08 crore including staffing, operation, and maintenance of STPs, alongside their corresponding interception and diversion (I&D) systems, under HMWSSB. The tenure of the contract will span five years, thus being a huge additive to the portfolio of Ramky Infrastructure.

The company operates basically in two business segments, namely construction and development. In the development business per se, the company is concentrating on building roads under built-operate-transfer (BOT) mechanisms and developing industrial parks, special economic zones, and bus terminals.

Even in light of this positively viewed award of contract, the company reported a downturn of its earnings for Q2 FY25, with consolidated net profit lower at 30.6% at Rs 78.19 crore against the revenues gained during that period last year. This decrease was correlated to a 9.3% drop in net sales quarterly, registering Rs 527.42 crore compared to Q2 FY24.

Analysts see the contract as another beneficial aspect for Ramky Infrastructure towards its roadmap for future growth, notwithstanding the hiccups seen from its recently declared profits.