The announcement was made on Saturday, 6 July 2019.
Meanwhile, S&P BSE Sensex was down 698.77 points or 1.77% at 38,814.62.
On BSE, 11,000 shares were traded in Indian Hume Pipes counter, compared to a 2-week average of 62,000 shares. The share price hit an intraday high of Rs 310.90 and an intraday low of Rs 294.80. It hit a 52-week high of Rs 370 on 10 January 2019 and a 52-week low of Rs 220.25 on 3 October 2018.
Earlier on 20 December 2018 and 10 January 2019, the company intimated award of contract vide letter of acceptance of Rs 502.89 for the work of construction of drinking water supply projects in Guntur district and letter of acceptance of Rs 198.77 crore for construction of drinking water supply projects in Vizianagaram district, respectively, from Andhra Pradesh Drinking Water Supply Corporation (APDWSC).
The company announced on 6 July 2019, that it has received notices of termination of the agreements from APDWSC in respect of the above works owing to change in the policy of the government, vast changes in the scope of the work and to give effect to the articles of association of the corporation, which include provision of drinking water to urban areas as well. The company is called upon to raise objections for explanations if any within 15 days from receipt of the termination notices.
The company said it will explore legal remedies in accordance with the said agreements. Further, the company said its order book position as of 20 May 2019 was Rs.5326.22 crore as against Rs 3,205.63 crore as at 15 May 2018. Even after notice of termination of above two orders, the order book position is comfortable, the firm added.
Indian Hume Pipes' net profit rose 24.7% to Rs 28.92 crore on a 25.8% surge in net sales to Rs 517.33 crore in Q4 March 2019 over Q4 March 2018.
Indian Hume Pipes is engaged in manufacturing and marketing of hume pipes and allied products.