Dilip Buildcon jumps after JV receives LOA for construction project.

Dilip Buildcon rose 3.29% to Rs. 392.70 after the company's joint venture with the engineering firm HCC (HCC-DBL) received letter of acceptance (LOA) on 18 August 2020 from Rail Vikas Nigam for a construction project in Uttarakhand.

The construction project, the tender for which was floated by Rail Vikas Nigam, involves construction of bridges, tunnels, yard and formation work in connection with the new 125-km long new broad gauge rail line between Rishikesh and Karanprayag in Uttarakhand. The project, having a length of 7.955 km with a bid cost of Rs. 1334.95 crore, is to be completed within a 50-month period (equivalent to four years and two months).

Shares of Dilip Buildcon have surged 12% in three trading days.

On a consolidated basis, Dilip Buildcon's net profit tanked 49.7% to Rs. 50.48 crore on 13.8% decrease in net sales to Rs. 2,099.95 crore in Q1 June 2020 over Q1 June 2019.

BS