The shares of the critical power systems provider hit 5 percent upper circuit after the company secured a prestigious work order from Rail Vikas Nigam Limited for Rs 1,412 crore.
With a market capitalization of Rs 2,949.33 crore, the shares of Exicom Tele-Systems Ltd were trading at Rs 244.10 per share, increasing around 5 percent as compared to the previous closing price of Rs 232.50 apiece.
Reason for rise
The shares of the company have seen bullish movement after Exicom Tele-Systems Ltd secured a prestigious purchase order from Rail Vikas Nigam Limited for the Supply of Telecom equipment (Power Systems & Racks) along with maintenance of this telecom equipment for 10 years in Uttar Pradesh (East) Telecom Circle and Uttar Pradesh (West) Telecom Circle worth Rs 1,412 crore.
Financial Performance
Looking forward to the company’s financial performance, revenue increased by 19 percent from Rs 190 crore in Q2FY24 to Rs 153 crore in Q2Y25. During the same period, net profit plummeted by 194 percent, from a profit of Rs 18 crore to a loss of Rs 17 crore.
The company’s revenue breakdown includes ₹105 crores from Critical Power and ₹43 crores from EV Chargers. Overall, it generated ₹315 crores from Critical Power and ₹76 crores from EV Chargers. EBITDA margins were slightly lower due to the acquisition of Tritium, a global EV charging company.
Segment update
The EV charging segment saw a mild dip in H1 due to slower electric vehicle sales, as consumers awaited new models. However, October’s model launches led to a surge in sales, and growth is expected, fueled by government policies supporting electric buses, trucks, and expanded sales channels.
Revenue in the critical power segment remained stable in H1 FY’25 due to the telecom industry’s cyclical nature. The company is engaged in major government projects like BharatNet, aiming to connect panchayats with fiber. Opportunities in hybrid systems and solar solutions for areas with weak grids are also being explored.
Also read….
Acquisition
Exicom acquired Tritium, a global leader in DC charging technology, expanding its addressable market from ₹9,000 crores to ₹90,000 crores. Tritium has deployed 10,000 chargers in 47 countries. Integration is expected to take a year, with management optimistic about long-term revenue and profitability growth.
Market Position
Exicom holds a dominant market share in home charging (over 50%) and leads in public charging infrastructure. While facing competition in public contracts, the company focuses on long-term value and product quality. Management remains optimistic about growth despite challenges in the EV and critical power sectors.
Future Outlook
The company anticipates telecom infrastructure growth at 10% annually and a 30-40% CAGR in the EV charging market over the next five years. The management is focused on maintaining market share and scaling the business with existing customers through innovation, reliability, and strategic expansion.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
