Green Energy stock engaged in offering engineering, procurement, and construction (EPC) services for the development of solar power plants, energy storage solutions, and many more jumped 5 percent in the day’s trade upon receiving Rs. 450 Crores under PLI for Hydrogen Electrolyzer.
Price Action
With a market capitalization of Rs. 3,590 Crores, the shares of Gensol Engineering Limited were trading at Rs. 948 per equity share, down 1 percent from its previous day’s close price of Rs. 956.60.
PLI Scheme for Hydrogen Electrolyzer
Gensol Engineering Limited in collaboration with Matrix Gas & Renewables Limited a fastest-growing green hydrogen infrastructure developer and natural gas aggregator announced that it has emerged as a winning bidder under the Production Linked Incentive (PLI) scheme for setting up a 237 MW annual capacity Hydrogen electrolyzer manufacturing plant
The Gensol-Matrix consortium has secured a cumulative 300 MW capacity in total, including a prior 63 MW awarded in the first tranche of the SECI tender that equates to Rs. 450 Crore cumulatively incentive under the PLI scheme.
Gensol & Matrix are both companies promoted by common promoters and will continue to collaborate in the Green Hydrogen and its derivates including Green Steel and Green Ammonia domain taking benefit of the skill sets of each entity.
The Hydrogen Electrolyser is the key component for the production of Green Hydrogen and its derivatives and this project will play a pivotal role in achieving India’s goal of producing 5 million metric tons of green hydrogen annually by 2030.
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About the Company
Gensol Engineering Limited is part of the Gensol Group of companies, it is a leading player in the renewable energy sector in offering engineering, procurement, and construction (EPC) services for the development of solar power plants. It operates across four segments namely Solar EPC, Solar Panel Tracking Tech, EV Leasing, and EV Manufacturing.
Gensol Engineering Limited is Diversifying into EV manufacturing and EV leasing marking a strategic shift for Gensol, allowing for multiple revenue streams, reduced reliance on a single sector ensuring stability.
Gensol Engineering Limited has a strong order book of Rs. 1,783 Crores, with 33,693 MW+ Historical foundation of technical advisory services, 770 MW+ Ground mounted, rooftop, and floating solar EPC projects and it has 6,000+ EVs on lease.
It has a strong customer base with well-known players like Gail, Astral Pipes, GMR, L&T Realty, SRF, Hitachi, Hindalco, RBI, Trident Energy and many others.
Financials and Ratios
Its Revenue from operations grew by 104 percent from Rs. 145 Crores in Q1FY24 to Rs. 295 Crores in Q1FY25, accompanied by profits of Rs. 10 Crores to Rs. 15 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 20 percent, and a return on capital employed (ROCE) of 12.3 percent. It has reported a high debt-to-equity ratio of 4.63.
Written by: Bharath K.S
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