A small-cap stock involved in providing consultancy to state transmission and distribution companies expects revenue to grow by over 200 percent in FY25, surpassing Rs.850 crore, up from Rs.285 crore in FY24. This growth is driven by a strong Rs.2,570 crore order book and timely execution of projects.
Price Variation
In Monday’s trading session, Rajesh Power Services Ltd’s share price soared 4 percent to an intra-day high of Rs.979.00 per share, up from the previous close of Rs.941.70 apiece. The price has since retreated and is currently trading at Rs.940.15 per share.
What is the news
Rajesh Power Services Ltd is expected to see substantial growth, with revenue projected to surpass Rs.850 crore in fiscal 2025, up from Rs.285 crore in fiscal 2024. This growth is supported by a strong order book of over Rs.2,570 crore and successful scaling of operations with timely execution.
Revenue is set to grow by over 200 percent in FY25, backed by a year-to-date topline of Rs.313 crore in the first half of fiscal 2025, compared to Rs.99 crore in the same period of FY24. The operating margin rose to 11.92 percent in fiscal 2024 from 7.14 percent in FY23, due to the ramp-up in operations and higher-margin orders.
The company’s financial risk profile is expected to improve over the medium term, supported by the absence of large, debt-funded capex. As of March 31, 2024, the company had a net worth of Rs.123.12 crore, a gearing ratio of 0.34 times, and a TOLTNW ratio of 0.97 times.
Debt protection metrics remain strong, with an interest coverage ratio of 4.74 times and an NCAAD ratio of 0.64 times in fiscal 2024, both expected to improve as operations and profitability scale up.
Core Services
Rajesh Power Services specializes in EHV transmission systems, offering projects for Extra High Voltage lines and substations, including underground cable laying up to 220 kV.
It provides end-to-end consultancy and project execution services, along with operation and maintenance services like cable testing and fault location. The company is also focusing on renewable energy, particularly solar power, and plans to explore green hydrogen technology.
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Financial Overview
Turning towards the financials of the company, Rajesh Power Services Ltd reported revenue of Rs.285 crore in FY24, up remarkably by 38 percent from Rs.207 crore in FY23. Profit After Tax (PAT) increased by 272 percent to Rs.26 crore, compared to Rs.7 crore in the same period.
Company Profile
Founded in 1971, Rajesh Power Services Ltd is a leading engineering and contracting company based in Ahmedabad, Gujarat. Over the past five decades, it has established itself as a significant player in India’s underground power transmission and infrastructure EPC (Engineering, Procurement, and Construction) sector.
Written by – Siddesh S Raskar
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