Shares of a leading player in the electrical infrastructure solutions sector are in focus, after the company announced securing an order worth Rs. 54.2 million for the construction of transmission elements.
With a market cap of Rs. 1,094 crores, the shares of RMC Switchgears Limited surged around 2.7 percent on BSE to reach an intraday high at Rs. 1,143.95 on Monday, as against its previous closing price of Rs. 1,114.2.
What’s the news:
RMC Switchgears Limited, as per its latest regulatory filings with the BSE, announced receiving an order worth Rs. 5.42 crores from Suncity Urja Private Limited.
The order involves the construction of various transmission elements, including 220 kV and 132 kV associated lines at the 220 kV GSS Sheo in the Barmer district. The scope of work covers surveying, supplying all equipment and materials, erection (including civil works), testing, and commissioning.
Previous News:
On 17th December, RMC Switchgears received a Letter of Acceptance (LoA) worth Rs. 90 crores from a reputed system integrator for the supply, installation, and commissioning of 5,000 solar pumps in Maharashtra. The LOA comprises 3HP, 5HP, and 7HP solar pump systems, with the project scheduled for completion in FY26.
On 16th December, the company announced plans to set up a 1 GWp Solar Module Manufacturing Plant and a Solar Module Mounting Structure unit in Jaipur, Rajasthan, with an estimated capex of Rs. 100 crores.
The facility, adjoining the existing plant, will ensure operational efficiency and will be funded through internal accruals, equity, and debt. Both units are expected to be operational by July 2025, with commercial revenue starting in August 2025.
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Financials:
RMC Switchgears reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 37.6 percent, increasing from Rs. 125 crores in FY23 to Rs. 172 crores in FY24.
Similarly, during the same period, the company’s net profit increased from Rs. 12 crores to Rs. 15 crores, representing a rise of around 25 percent YoY.
Stock Performance:
The stock has delivered positive returns of nearly 80.6 percent in one year, as well as around 49.2 percent returns in the last six months. So far in 2024, the shares of RMC Switchgears have given positive returns of about 80 percent.
About the company:
RMC Switchgears Limited is primarily engaged in the business of Switchgear Engineering, and EPC contracts for the power distribution/transmission sector.
Additionally, it has established a strong reputation in the smart meter enclosure market, supporting utilities across India under initiatives such as the Revamped Distribution Sector Scheme (RDSS).
The company is a leading player in the electrical infrastructure solutions sector, specialising in the manufacturing of electrical enclosures that prevent electrical theft and enhance safety by preventing electrocution.
Written by Shivani Singh
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