Shares of Sattva Engineering Construction Limited rose nearly 8% on Monday after the company announced that its consortium with JSR Infra Developers Private Limited had secured a wastewater treatment project from Thiruverkadu Municipality in Tamil Nadu.
The stock was trading at ₹66.80, up 7.57% during the session. The company has a market capitalization of around ₹116.69 crore.
Project details
According to the company’s release, the consortium has received a Letter of Acceptance (LoA) for the design, engineering, construction, commissioning, operation and maintenance of a 46 MLD (million litres per day) Sewage Treatment Plant at Koladi.
The project will be executed under the Design-Build-Operate-Transfer (DBOT) model.
Key details
- Client: Thiruverkadu Municipality
- Location: Koladi, Tamil Nadu
- Plant capacity: 46 MLD
- Total contract value: ₹108.4 crore (excluding GST)
- Construction component: ₹78.8 crore
- Operations and maintenance component: ₹29.6 crore
- Construction period: 18 months
- O&M period: 120 months (10 years)
Technology to be used
The plant will use Sequential Batch Reactor (SBR) technology.
SBR technology is widely used in wastewater treatment and water quality management.
Long-term revenue component
A sizeable portion of the project value comes from operations and maintenance activities.
The ₹29.6 crore O&M component provides revenue visibility beyond the construction phase and creates a recurring income stream over the next decade.
Stock performance
Sattva Engineering shares have gained around 3.33% over the last five trading sessions.
Over the past month, the stock has declined about 4.57%.
The stock has touched:
- 52-week high: ₹118.90
- 52-week low: ₹43.50
About the company
Established in 2005, Sattva Engineering Construction Limited is a Chennai-based EPC company.
Its areas of operation include:
- Water and wastewater management projects
- Industrial infrastructure
- Residential construction
The company provides engineering, procurement, construction, commissioning and operations and maintenance services to government and industrial clients.
The ₹108.4 crore order is expected to strengthen the company’s order book and provide long-term revenue visibility.
TL;DR
Sattva Engineering rose nearly 8% after its consortium with JSR Infra Developers secured a ₹108.4 crore sewage treatment project from Thiruverkadu Municipality. The contract includes a 10-year operations and maintenance component.
AI Summary
- Sattva Engineering gained almost 8% during the session.
- The consortium won a ₹108.4 crore project from Thiruverkadu Municipality.
- The project involves a 46 MLD sewage treatment plant.
- Construction will take 18 months.
- Operations and maintenance will continue for 10 years.
