Generic bags work orders worth Rs. 101.95 crore

Generic Engineering Construction and Projects Limited ("Generic"), has been awarded with new work orders worth Rs. 101.95 crore (excluding GST) for various institutional projects from various clients, which inter alia includes a project of Rs. 30 crore (excluding GST) for construction of school from Aditya Birla Group.

With receipt of above, the total current outstanding order book stands at Rs. 1,067.54 crore.

On the receipt of the orders, Mr. Manish Patel, Managing Director said, "We are delighted with our new work order wins, especially as it comes at a time when the entire construction and real0 estate sector are passing through very challenging times.

We are gradually scaling up our execution, post the graded lifting of lockdown, though shortage of labour remains a key constraint as of now. We expect the work to normalize in second half of this fiscal year. At the same time, to mitigate the issue of shortage of manpower, the company has started bidding for projects in the northern states of India, where the majority of labourers have migrated. We are also aggressively bidding for new projects, especially in the public sector, to build a robust order book, so that we can make up for the revenue lost during the lockdown, in the coming quarters.

Most of our clients have provided the necessary extension in timelines for the completion of projects under construction. The company is also in negotiation with clients for considering the escalation in project costs and making submissions for claiming the necessary compensation thereof. Also, major part of our order book constitutes of non-residential projects like warehousing, cold storages, factories etc. which have not been significantly impacted by the pandemic. Importantly, one of our major residential projects, includes the construction of staff quarters for Maharashtra State Police Housing & Welfare Corporation Limited, which is for self-consumption.

Despite the pandemic, the business opportunities in our operating region of MMR have remained promising and we expect the momentum of order inflow, especially in industrial, infrastructure and other sectors to continue. It is our continuous endeavour to add orders from existing and new clients, both in public and private sector and we are confident on further consolidating our order book."

Shares of Generic Engineering Construction and Projects Ltd was last trading in BSE at Rs.54.55 as compared to the previous close of Rs. 52.85. The total number of shares traded during the day was 9325 in over 62 trades.

The stock hit an intraday high of Rs. 55 and intraday low of 52.5. The net turnover during the day was Rs. 502222.

Source : Equity Bulls

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