During Friday’s trading session, the shares of one of the leading industrial services and construction companies providing services in the power and infrastructure sector surged nearly 3 percent to Rs. 2,862.2 on BSE, after securing an order worth Rs. 510 crores from Adani Power.
With a market capitalisation of Rs. 8,949.6 crores, at 02:30 p.m., the shares of Power Mech Projects Limited were trading in the green at Rs. 2,830.7, up by 1.9 percent, compared to its previous closing price of Rs. 2,779.1.
What’s the News:
According to 29th November regulatory filings, Power Mech Projects Limited received an order valued at Rs. 501 crores from Adani Power Limited for a Thermal project.
The order includes mechanical construction works for two 800 MW Raipur Phase-II Ultra Supercritical Thermal Power Projects located in Raipur District, Chhattisgarh. The project is to be executed by 34 months from the required erection start date.
Previous News & Orders:
On 22nd August, the company’s Board decided to issue bonus shares in the 1:1 ratio, with the record date fixed to Tuesday, October 8, 2024.
Accordingly, 1 new fully paid-up equity share of Rs. 10 each will be issued for 1 fully paid-up equity share of Rs. 10 each held by the shareholders.
On 19th September, Power Mech Projects Limited received an order worth Rs. 865 crores for the Operation and Maintenance (O&M) of three 660 MW supercritical thermal power plants of Talwandi Sabo Power Limited, a subsidiary of Vedanta Limited, at Banawala village, Punjab.
On 26th September, the company secured an order valued at Rs. 226.66 crores from Gujarat Mineral Development Corporation Limited, a Government of Gujarat Enterprise.
This order involved the O&M and repair of the 250 MW (2X125) Power Plant and its associated equipment for power generation, as well as the transition to the 220KV switchyard and related tasks.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 11 percent from Rs. 932 crores in Q2 FY24 to Rs. 1,035 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 51 crores to Rs. 70 crores, indicating a growth of 37.3 percent YoY.
On a year-on-year basis, the EBITDA increased from Rs. 118 crores in Q2 FY24 to Rs. 134 crores in Q2 FY25, registering a growth of 13 percent, with the EBITDA margin rising from 12.57 percent to 12.7 percent, over the same period.
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Order Book & Management Guidance:
As of 30th September, Power Mech Projects Limited reported an order inflow of Rs. 3,055 crores. This inflow was primarily driven by Operations & Maintenance (O&M) works, which accounted for 60.9 percent, followed by Civil & Other Works at 31.3 percent, and Erection works at 7.8 percent
During the same period, the company’s order backlog reached Rs. 58,067 crores, with Mining works making the largest contribution at 68.3 percent. Erection accounted for 10.9 percent, Civil & other works contributed 13.5 percent, O&M contributed 5.7 percent, and Electrical Works made up the remaining 1.6 percent.
The management is confident of achieving revenue growth in the range of 25-30 percent for FY25 and has set a target of Rs. 12,000 crores for its order intake in the same financial year.
Stock Performance
The stock has delivered positive returns of nearly 36.6 percent of returns in one year, as well as around 17.6 percent returns in the last six months. So far in 2024, the shares of Power Mech Projects have given positive returns of about 26.6 percent.
About the Company:
Incorporated in 1999, Power Mech Projects Limited is an engineering and construction company engaged in providing integrated service in the erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M).
Written by Shivani Singh
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