Ceigall India Limited has secured a significant legal victory against the National Highways Authority of India (NHAI) in a recent judgment by the Delhi High Court. The court's ruling quashed NHAI's decision to forfeit bid security amounting to ₹54.35 lakh from the company.

Legal Battle and Outcome

The case stemmed from NHAI's partial invocation of a Surety Bond against Ceigall India's bid security. In response, the company filed a writ petition challenging this action in the Delhi High Court. The court's verdict not only set aside the forfeiture but also overturned NHAI's partial invocation of the Surety Bond.

Court's Directive

As part of the judgment, the Delhi High Court has instructed Ceigall India to:

1. Deposit ₹15.00 lakh with NHAI
2. Exercise due care to avoid unintentional errors in future bid price quotations

This directive serves as a precautionary measure to ensure more accurate bidding practices in the future.

Financial Implications

Ceigall India Limited anticipates a positive impact on its financial position as a result of this favorable judgment. The company's ability to retain the majority of the contested bid security is expected to strengthen its financial standing.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Ceigall India promptly informed the stock exchanges about this development. The company's disclosure provided detailed information about the court's decision and its potential impact.

Management's Response

Megha Kainth, Company Secretary of Ceigall India Limited, officially communicated the court's decision to the stock exchanges, underlining the company's commitment to transparency and regulatory compliance.

This legal victory marks a significant milestone for Ceigall India Limited, potentially bolstering investor confidence and reinforcing the company's position in its operational sector.

Ceigall India Limited, a prominent infrastructure company, has reported a robust performance for the first quarter, with significant developments across its business segments.

Financial Performance

Ceigall India's standalone revenue from operations, excluding bonus and royalty, reached Rs 8,183.00 million in Q1, marking an 8.7% increase from Rs 7,530.00 million in the corresponding quarter of the previous year. The company's EBITDA stood at Rs 935.00 million, reflecting a margin of 11.42%, while profit after tax came in at Rs 559.00 million with a PAT margin of 6.83%.

Order Book and Project Updates

As of June 30, Ceigall India's order book stood at Rs 103,374.00 million, comprising a diverse mix of projects:

The company has made significant progress on several fronts:

• Both Ayodhya projects (Southern and Northern), valued at Rs 23,160.00 million, have commenced.
• The company has infused Rs 4,198.41 million equity into HAM projects up to June, with an additional Rs 872.00 crores pending infusion.
• Positive developments are expected for VRK 11 and 12 projects, with Stage 1 clearance anticipated soon.

Entry into Transmission and Distribution Sector

In a strategic move, Ceigall India has entered the transmission and distribution (T&D) sector. The company emerged as the L1 bidder for the Velgaon 400 kV substation project worth Rs 4,900.00 million. This marks a significant step in diversifying the company's portfolio and expanding its presence in emerging infrastructure segments.

Project Terminations and Legal Developments

The Bhubaneswar Metro project was terminated by Delhi Metro in July. Ceigall India had already spent close to Rs 30.00 crores on this project and is in the process of submitting claims.

On the legal front, the company received favorable rulings in two cases:

1. An arbitral award of Rs 19.36 crores plus future interest in a matter with the Himachal Pradesh Works Department.
2. An alternative reward of approximately Rs 3.17 crores with applicable interest in an ongoing matter with Punjab Small-scale Industry and Export Corporation.

Management Commentary

Ramneek Sehgal, Chairman and Managing Director of Ceigall India Limited, commented on the results during the earnings call: "We maintained stable momentum in Q1, supported by the diversified mix of EPC and HAM projects. In line with our long-term strategy, we continue to expand our portfolio across segments and geographies."

He added, "Our entry into the T&D sector with the Velgaon project win is a clear sign of our ability to diversify and compete strongly in emerging sectors."

Outlook

Ceigall India maintains its revenue growth guidance of 10-15% and EBITDA margin guidance of 11-11.5% for pure EPC business. The company is targeting Rs 5,000.00 crores in new order inflows for the fiscal year.

With a strong order book, entry into new sectors, and ongoing project executions, Ceigall India appears well-positioned to capitalize on the growing infrastructure opportunities in India.