HCC-led JV bags order worth `987cr ::Angel Broking,

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HCC-led JV bags order worth `987cr
Hindustan Construction Company (HCC) in a joint venture with DSD Brouckenbau
GmbH, Germany, and VNR Infrastructures Ltd. has bagged an order worth `987cr
from Northeast Frontier Railway to construct the superstructure of Bogibeel railcum-
road bridge over river Brahmaputra near Dibrugarh, Assam. HCC’s share in
this order is 51% (`503cr), DSD Brouckenbau GmbH has 20% share and VNR
Infrastructures Ltd. has a share of 29%.


Bogibeel rail-cum-road bridge will be a double-decked bridge having two railway
tracks on the lower deck and a three-lane road on the upper deck. The road level
will be 10.5 meters above the railway line. The total length of the bridge will be
4.3km. The project will be completed in 48 months. With this order, HCC’s
outstanding order book now stands at ~`16,678cr (4.1x FY2011 revenue). Owing
to concerns such as uncertainty on Lavasa project (on the complete project as
clearance from MOEF was for Phase 1only), slowdown in order inflow, high
debt and stretched working capital we maintain our Neutral view on the stock.