EV Stock engaged in the business of providing end-to-end solutions for the manufacturing, procurement, and distribution of advanced EV Chargers, solar systems, and many more jumped 3 percent in the day’s trade following strategic partnership with UK-based Ensmart Power to expand and enhance its EV Charger operations.
Price Action
With a market capitalization of Rs. 4,132 Crores, the shares of Servotech Power Systems Limited were trading at Rs. 185.35 per equity share, down 1.5 percent from its previous day’s close price of Rs. 188.14.
What Happened
Servotech Power Systems Limited and UK-based Ensmart Power, a pioneer in Critical Power, Solar, and Energy Storage Systems, have signed a sole distribution agreement to expand their EV charger distribution network across the UK and beyond, including North America.
By combining Servotech’s innovative EV charging solutions with Ensmart Power’s expertise in energy storage and distribution, the partnership aims to provide a reliable and accessible charging infrastructure for their consumers.
This agreement will capitalize on the rapid growth of electric vehicle adoption in the specified regions and drive the development of green mobility alternatives, contributing to a carbon-neutral transportation ecosystem and setting new standards in efficiency, reliability, and environmental responsibility
Management Comments
Raman Bhatia, Founder and Managing Director, Servotech Power Systems Ltd. commented, “This collaboration is a strategic move to establish a strong international footprint and bring innovative solutions closer to overseas users, with an emphasis on local production.
Servotech aims to deliver world-class EV charging solutions and this partnership will allow us to localize Ensmart Power’s global expertise and address the increasing demand for innovative charging solutions. Each charging point will contribute to a comprehensive network of stations, accessible to all electric four-wheelers, enhancing the on-the-go charging experience for emobility users in the UK and other regions.”
About the Company
Servotech Power Systems Limited is engaged in the business of providing end-to-end solutions for the manufacturing, procurement, and distribution of advanced EV Chargers, solar systems, solar-related products, medical devices, energy-efficient lighting solutions, and many more.
Servotech Power Systems has the installed capacity to manufacture ~60,000 AC EV Chargers and 12,000 DC EV chargers per year. It has a Strong supply chain network with a presence in over 600+ cities across 21+ Indian States.
Its Marquee clientele consists of Tata Motors, Morris Garages, Tata Power, BPCL, IOCL, HPCL, Nayara Energy, NCC, Adani E-Mobility, Techbec, and many others
Revenue Breakdown
As of Q1FY25, it generated 61.26 percent of its revenue from EV Chargers-DC, EV Charger AC 23.91 percent, Solar Products 9.52 percent, spares 3.82 percent, Installation services 1.46 percent, and Medical Devices 0.03 percent.
It generates revenue from the sale of AC & DC EV charging units. Additionally, it also generates revenue from the sale of Solar products (solar inverters, solar batteries, solar panels, etc.), LEDs, Medical Devices (Oxygen Concentrator & UVC), inverters, and batteries. Further, it generates revenue from providing maintenance services.
Financials & Ratios
Its Revenue from operations grew by 41 percent YoY from Rs. 79.57 Crores in Q1FY24 to Rs. 112.19 Crores in Q1FY25, accompanied by profits of Rs. 4.11 Crores to Rs. 4.49 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 8.86 percent and a return on capital employed (ROCE) of 8.29 percent. In terms of liquidity ratio, it has maintained a debt-to-equity ratio of 0.51.
Written by: Bharath K.S
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