Servotech Power Systems shares surged during the trading session on Tuesday after the company reported a strong performance in the quarter and half year ended on September 30, 2023. The company announced its earnings on Monday after the market hours.
Servotech Power Systems' profit after tax surged over 300 per cent on a year-on-year (YoY) basis to Rs 3.12 crore in the September 2023 quarter, compared to a bottomline of Rs 0.78 crore in the year ago period. The net profit margin came in at 3.60 per cent against 1.94 per cent YoY.
Company's revenue from operation surged more than 114 per cent to Rs 85.93 crore in the second quarter of the ongoing financial year, compared to a revenue of Rs 40.16 crore in the year ago period. EBITDA of the company grew 148 per cent YoY to Rs 5.97 crore, with an EBITDA margin improving to 6.89 per cent.
Servotech Power Systems is a manufacturer of solar products and electric vehicle (EV) chargers. It is also into powerbackup and smart power solutions. The company has attributed the growth in financial performance majorly to strong performance by its EV division and the solar division.
Following the announcement of results, shares of Servotech Power Systems surged about 4 per cent to Rs 79.95 on Tuesday, commanding a total market capitalization of close to Rs 1,900 crore. The scrip had settled at Rs 77.05 in the previous trading session on Monday. The stock has zoomed over 535 per cent from its 52-week low at Rs 12.55.
Servotech's bottomline surged more than 535 per cent to Rs 7.23 crore YoY with a revenue from operations rising 130 per cent YoY to Rs 165.50 crore for the six months ended September 30, 2023. EBITDA came at Rs 13.1 crore, suring 245 per cent YoY, with EBITDA margins 7.87 per cent for the April-September 2023 period.
It's worth noting that our strategic partnerships and collaborations with the Uttar Pradesh government and other esteemed institutions like EMCOR, IIT Roorkee, in alignment with the 'Make in India' initiative, have been pivotal in reshaping the landscape of both the EV charging infrastructure and the solar industry, said Raman Bhatia, Managing Director at Servotech Power Systems.
"We remain firmly committed to our vision of delivering customer-centric solutions in the realm of sustainable, clean, and green energy. As we step into the future, we are closely aware of the substantial potential within the markets we serve and are well prepared to seize the growth opportunities that lie ahead," he said.
New-Delhi based Servotech Power Systems is an organization that develops tech-enabled EV Charging solutions leveraging their over two decades of experience and expertise in the electronics space. The NSE-listed player has a strong pan-India presence in distribution of high-end LED lighting and UV-C disinfection products.
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