Order Wins & Contracts
EMS Limited Receives ₹102.85 Crore LOA from UP Jal Nigam for Sewer Network Project in Varanasi
NSE
emslimited
BSE
543983
EMS Limited has received a Letter of Acceptance (LOA) from UP Jal Nigam (Urban), Varanasi for sewer network laying and house connection works in four wards of Varanasi. The contract, valued at ₹102.85 crore (excluding GST), is scheduled for execution over 24 months.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Letter of Acceptance (LOA) for urban sewer infrastructure project.
Type: Order Wins & Contracts
Impact: Positive
Immediate Effect: The new order strengthens EMS Limited’s order book and enhances revenue visibility in the urban water and sanitation infrastructure segment.
Metrics:
Key Metrics:
- Order Value (Excluding GST): ₹10,284.76 lakh (₹102.85 crore)
- Awarding Authority: UP Jal Nigam (Urban), Varanasi
- Execution Period: 24 months
- Project Location: Nagar Nigam, Varanasi
- Nature of Work: Sewer network laying and sewer house connections
- Project Type: Turnkey infrastructure contract
Highlight:
- EMS Limited secured a ₹102.85 crore urban sewer infrastructure project from UP Jal Nigam (Urban), strengthening its municipal infrastructure order pipeline.
What Happened ?
EMS Limited informed the stock exchanges that it has received a Letter of Acceptance (LOA) from UP Jal Nigam (Urban), Varanasi after previously being declared the lowest bidder (L1) for the project.
The contract involves laying sewer networks and providing sewer house connections across 18 problematic wards, specifically covering Shivpurwa, Tulasipur, Birdopur and Kajipura, under Nagar Nigam, Varanasi. The estimated contract value stands at ₹102.85 crore (excluding GST) and will be executed over a period of 24 months.
key details
Project Details:
- Awarding authority is UP Jal Nigam (Urban), Varanasi.
- Contract awarded through a Letter of Acceptance (LOA).
- Project covers sewer infrastructure development in 18 problematic wards of Nagar Nigam, Varanasi.
- The work specifically includes:
- Laying and jointing of sewer networks.
- Providing sewer house connections.
- Scope includes:
- Surveying and soil investigation.
- Engineering design.
- Supply of materials.
- Labour and tools & plant (T&P).
- Complete turnkey project execution.
- Execution period is 24 months.
- The contract has been awarded by a domestic government entity.
Note:
- The company has not disclosed project-wise margin estimates, funding structure, milestone-based payment schedule or expected annual revenue recognition.
Risk Analysis
Summary:
- Although the project expands EMS Limited’s infrastructure order book, execution performance and project timelines will determine revenue realization and profitability.
Key Risks:
- Revenue will be recognized progressively during project execution.
- Infrastructure projects may face delays arising from approvals, land availability or utility coordination.
- Cost escalation or execution challenges could affect project margins.
- No detailed margin guidance or profitability estimates have been disclosed.
Worst Case:
- Execution delays, cost overruns or slower project progress could postpone revenue recognition and impact operating margins.
Risk Level: Medium
Company Commentary
- EMS Limited has received the Letter of Acceptance from UP Jal Nigam (Urban), Varanasi.
- The project involves sewer network laying and sewer house connections on a turnkey basis.
- The estimated order value is ₹102.85 crore (excluding GST).
- The contract is scheduled for execution over 24 months.
Official Exchange Filing: EMS Limited
