Punj Lloyd shares gained as much as 8.68 per cent in the morning trade on Monday after the company announced that it has secured a contract for the EPCC Package 2 at Haldia Refinery, West Bengal from Indian Oil Corporation for a value of Rs 1,094 crore.
At 11.21 am, the scrip was trading 6.40 per cent higher at Rs 25.75. It opened at Rs 24.40 and had touched a high and low of Rs 26.30 and Rs 23.85, respectively, in trade so far.
In a BSE filing, the company said, “The scope of the work involves, Residual Process Design, Detailed Engineering including HAZOP study, engineering, procurement, construction and commissioning of the Sulphur Block comprising the Sulphur Refinery Unit, Amine Regeneration Unit, the Sour Water Stripper including the Utilities and Offsite facilities.”
This project falls under IOC’s prestigious ‘Aishwariya’ Project. IOC’s Haldia project aims to upgrade Black Oil, mainly High High Sulphur Fuel Oil to higher value products like diesel and LPG which will lead to subsequent improvement in Gross Refinery Margins. It will also produce improved quality diesel, conforming to BS-IV specifications as a measure towards environmental protection.
“With this new win, the Group’s order backlog stands at Rs 20,978 crore. The order backlog is the value of unexecuted order on June 30, 2015 plus new order received after that date,” the company said in the BSE realease.
For the quarter ended June 30, 2015, the company posted net loss of Rs 597.87 crore against loss of Rs 363.92 crore in the corresponding quarter a year ago.
The share price of the company closed 6.20 per cent higher at Rs 25.70.