Shares of Patel Engineering rose more than 2% in morning trade on February 22 after the company was announced as the lowest bidder for the Rs 1,026 crore project.

The City and Industrial Development Corporation (CIDCO) and Visvesvaraya Jala Nigam Ltd (VJNL) announced that Patel Engineering was the lowest bidder for the works, including the design and construction of a long-term treated water tunnel from Sai village to Vindhane village in Raigad district, the companies said in a release.

The work included investigation, design, supply, installation, testing and commissioning of a micro-irrigation system under the Tumkur branch canal in Karnataka.

The total value of the micro-irrigation project is Rs 470.67 crore and will be executed with joint venture partners. The company’s stake is worth Rs 240.04 crore, while the water tunnel project worth Rs 555.83 crore will be completed without any joint venture partnership.

“With these orders, our total L1 amounted to Rs 1,802 crore. Recently, we also announced L1 of Rs 1,567 crore for MP and Maharashtra projects and our share of Rs 1,006 crore for irrigation systems,” said Rupen Patel, Chairman and Managing Director of Patel Engineering.

“We are grateful to CIDCO and VJNL management for declaring our project as L1 and will strive to deliver the project within 60 months and 24 months as stipulated in the tender. This will allow us to win more than 540 orders in this financial year crore,” he said.

The company reported a net profit of Rs 31.19 crore for the quarter that ended December 2022, up 13.5% from Rs 27.49 crore in December 2021. Operating income rose 18% year-on-year to Rs 1,036.97 crore from Rs 877.94 crore a year earlier.

“Our order book includes all L1 orders of Rs 1,802 crore and will be at Rs 18,600 crore, which gives us good revenue visibility over the next 4-5 years,” he added.

At 9:16 am, Patel Engineering was trading at Rs 14.10 on the BSE, up Rs 0.3, or 2.17%.