Ducon Infratechnologies hits upper circuit on receiving fresh orders from an EPC organization
Post this announcement, when the markets opened, the stock hit 5% upper circuit at Rs 22.75, which is also its 52-week high.
Ducon Infratechnologies Ltd, a fossil fuel clean technologies company announced this morning that it has won a project from an EPC organization with whom it had partnered earlier also. In this project, the company shall provide its proprietary Coal Clean Technology, Fuel Gas Desulphurization (FGD) for the EPC organization’s 2x600 MW FGD package for Singareni Thermal Power Plant, Stage-I, Telangana.
As per the deal, Ducon will provide its FGD execution expertise to the project from concept to commissioning. The value of this project win is anticipated to be in the range of Rs 150 to Rs 200 crore.
Apart from this, the company also emerged as the lowest bidder for two other NTPC FGD projects and expects to receive those awards of the FGD orders soon.
Looking at the industry dynamics, the majority of the energy mix is accounted for by conventional fuels, such as coal. However, with the increasing consciousness about carbon emissions, the government is taking some serious efforts in increasing the stake of non-conventional sources such as solar and wind. It has also implemented some strict regulatory mandates such as BS-VI emission norms. Considering these factors, it is expected that the spendings on Fossil Fuel Clean Technologies/Greening of Fossil Fuels and Green Energy shall see an exponential rise in the coming years.
In Q2FY22, on a consolidated basis, Ducon Infratechnologies Ltd's net revenue stood at Rs 96.08 crore whereas, its net profit stood at Rs 1.41 crore.
At 9.15 am, upon market opening, the share price of Ducon Infratechnologies Ltd witnessed a surge and hit the upper circuit of 5%, trading at a 52-week high of Rs 22.75 on BSE.
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