HBL Engineering Limited has secured 2 contracts from South Central Railway for the indigenously developed Kavach Safety System. The total value of both contracts stands at ₹163.62 crore. Following this development, the shares of HBL Engineering Limited surged 5% to Rs 619 on the BSE in Monday’s trade.
Contract 1: Installing the Kavach System on the Vijayawada–Ballarshah section
HBL Engineering received an order of about ₹132.95 crore, which has a provision for deploying the Kavach System across the Vijayawada–Ballarshah section. This contract will cover about a 446km route, 48 stations and 10 locomotives. HBL Engineering is responsible for completing this work within a timeframe of 18 months.
Contract 2: Upgradation of Kavach System
In addition to the previously awarded contract, HBL Engineering has received a ₹30.67 crore contract from South Central Railway. Under this contract, HBL Engineering will carry out the upgradation of the Kavach system from Version 3.2 to Version 4.0. This work will take place on the Mudkhed (including)–Manmad (excluding) section covering a 350km route. As per the contract requirement, HBL Engineering will have to complete this work within 24 months (2 years).
As a result of these new contracts, HBL’s total order book has grown to ₹4,029.05 crore, up from ₹3,998.38 crore.
