The shares of the smart meter manufacturer hit 5 percent upper circuit of Rs 574.65 after the company received a letter of acceptance for rooftop solar systems worth Rs 320 crore.
Price Movement
With a market capitalization of Rs 592.37 crore, the shares of RMC Switchgears Ltd were trading at Rs 574.65 per share, increasing around 5 percent as compared to the previous closing price of Rs 547.30 apiece.
Reason for rise
The shares of RMC Switchgears Ltd have seen positive movement after receiving a Letter of Acceptance (LOA) from the Government of Rajasthan for the installation of rooftop solar systems with an aggregate capacity of 50 MW across State Government Buildings in Jaipur and Dausa.
Moreover, the Rs 320 crore LoA (including GST) includes a one-time revenue of Rs 229 crore and recurring revenue of Rs 91 crore over 25 years for O&M. This ensures a stable long-term income stream for RMC through ongoing O&M services throughout the project’s lifecycle.
Furthermore, the project will be executed under the Hybrid Annuity Mode (HAM), ensuring long-term financial sustainability. Additionally, RMC will oversee the operation and maintenance (O&M) of the solar installations for the next 25 years from the date of commissioning.
Financial Performance
Looking forward to the company’s financial performance, revenue soared by 20 percent from Rs 87 crore in H1FY24 to Rs 105 crore in H1FY25, and during the time frame, net profit magnified by 25 percent from Rs 8 crore to Rs 10 crore.
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Recent Orders
Recently, the company has received a work order of Rs.19.23 crore from MAHAGENCO for Design, Engineering, Supply, unloading of PV Modules at site supplied by MAHAGENCO, erection, testing and commissioning of 10 MWAC cumulative capacity crystalline ground mounted solar PV Technology Grid interactive Distributed agriculture feeder solarization by Solar PV Power Plant under MSKVY 2.0 scheme.
Reputed Clientele
RMC Switchgears boasts a reputable client roster that includes notable names from state utilities and major private companies, such as Maharashtra State Electricity Distribution Co. Ltd, Uttar Pradesh Power Corporation, Larsen & Toubro, Bajaj Electricals, TATA Projects Limited, Adani Energy Solutions, NTPC, and GAIL.
Company Profile
RMC Switchgears Limited is engaged in the business of switchgear engineering, construction contracts for the power distribution/transmission sector, and polyvinyl chloride (PVC) marble and solid surface. The Company is engaged in researching, designing, and manufacturing electronic smart energy meter enclosures, distribution boxes and panels, etc.
Written by Abhishek Singh
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