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Sarda Energy zooms 14% as JV bags Composite Licence for iron ore block

Natural Resources Energy Pvt. Ltd. - a subsidiary Joint Venture company (NREPL), has been awarded the Letter of Intent for Composite Licence for iron ore block in Maharashtra

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Illustration: Ajay Mohanty

SI Reporter New Delhi

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Shares of Sarda Energy and Minerals jumped 14 per cent to Rs 223.5 per share on the BSE in Friday's intraday trade after the company's subsidiary joint venture granted Letter of Intent for Composite Licence by the state government of Maharashtra.

Natural Resources Energy Pvt. Ltd. – a subsidiary Joint Venture company (NREPL), has been awarded the Letter of Intent for Composite Licence for Surjagad 1 Iron Ore Block in the state of Maharashtra for iron ore for an area of 1,526 hectare. The iron and steel company has 51 per cent economic interest in the JV, the company said in an exchange filing.

At 10:55 AM, shares of the flagship Sarga Group company was up 13 per cent as against 0.19 per cent rise in the benchmark S&P BSE Sensex. 

Sarda Energy & Minerals is a vertically integrated producer of steel with captive iron ore. It manufactures and exports niche grade manganese based ferro alloys, and enjoys self-sufficient captive power from waste heat and  coal. 

During the October-December quarter, Sarda Energy posted a consolidated net profit of Rs 117.16 crore, down from a profit of Rs 130.36 crore posted last year (Q3FY23) and Rs 140.65 crore in Q2FY24. 

Revenue from operations came in at Rs 925.4 crore, up from Rs 908 crore Y-o-Y but down from Rs 1,000.36 crore Q-o-Q.

Steel was the biggest laggard among the various segments as the revenue from the segment dropped to Rs 510 crore vs Rs 565 crore Y-o-Y. This was followed by a decline in the revenue from Power segment -- Rs 212 crore vs Rs 228.7 crore Y-o-Y. Revenue from ferro Alloys, meanwhile, increased to Rs 363 crore vs Rs 291.6 crore Y-o-Y.

Over the past one month, shares of Sarda Energy have tumbled around 12 per cent as against 0.07 per cent dip in the benchmark Sensex index. The stock hit a 52-week high of Rs 264.95 on December 15, 2023, and a 52-week low of 96.7 on March 28, 2023. 

In January, Sarda Energy had awarded a contract worth Rs 150 crore to Gensol Engineering Ltd for the installation of a 50MW DC solar power plant in Chhattisgarh.

The contract entails the complete spectrum of activities, including design engineering, procurement, construction, and commissioning of the solar power plant. The anticipated timeframe for the project's completion is set at 6-9 months from the signing of the letter of intent, it had said.

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First Published: Mar 22 2024 | 11:19 AM IST

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