Patel Engineering shares surge 6% on strong Q4 results

Shares of Patel Engineering surged over 6% during the trading session, driven by the company’s strong fourth-quarter results and its plans to acquire a stake in a tunnel boring supplier startup.

In its reported standalone quarterly numbers, Patel Engineering Company posted a 5.43% year-on-year increase in net sales, reaching Rs 1,256.92 crore in March 2024, up from Rs 1,192.18 crore in March 2023.

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However, the company’s quarterly net profit declined by 16.8% to Rs 69.60 crore in March 2024, compared to Rs 83.66 crore in the same period last year.

Patel Engineering’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) stood at Rs 221.61 crore in March 2024, marking a 7.65% increase from Rs 205.87 crore in March 2023.

The company’s Earnings Per Share (EPS) decreased to Rs 0.90 in March 2024 from Rs 1.59 in March 2023.

In a significant development, Patel Engineering plans to acquire a 10% stake in a tunnel boring supplier startup, according to an exchange filing. The startup provides consultancy services in design and engineering, including supplying equipment for tunnels and other infrastructure projects.

As of 11:27 AM the shares were trading 6.06% higher at ₹62.15 on NSE.