Share price of a power technology company moved up by 2.8 percent to hit an intraday high at Rs. 417.95 on Wednesday, after the company secured a work order worth Rs. 56.68 crore from an AMISP provider.
With a market cap of Rs. 426.8 crore, at 12:54 p.m., the shares of RMC Switchgears Limited were trading in the green at Rs. 414, up by 1.82 percent.
According to June 4th regulatory filings with the BSE, RMC Switchgears received a work order from an AMISP (Advanced Metering Infrastructure for Smart Payment) provider for the supply of SMC Meter Enclosures for Smart Meters for the projects in PVVNL and MVVNL.
The work order is worth nearly Rs. 56.68 crores including GST and involves design, engineering, manufacturing, integration, testing, inspection, packing, supply, transportation, and insurance of SMC Box for Three Phase LT CT – Consumer & DT Meter.
Earlier on 11th March, RMC Switchgears announced the expansion of its manufacturing capacity for SMC Smart Metering Enclosures mainly to serve the rising demand from AMISP Projects.
The enhancement will enlarge the production capacity of the company by an additional 3 lakh enclosures annually, and the projected capex for this expansion is estimated between Rs. 7-10 crore, which will be funded through the RMC’s reserves and term loans.
With the strategic expansion, the company aims to become a Rs. 5,000 crore enterprise by the year 2030.
In terms of financials, the total income from operations stood at Rs. 172.63 crore in FY23-24, rising by 37.8 percent YoY from Rs. 125.3 crore in FY22-23, and the net profit grew by 26.8 percent to Rs. 14.9 crore from Rs. 11.74 crore, during the same period.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 25.2 crore in FY22-23 to Rs. 31.04 crore in FY23-24, representing a growth of 23.2 percent.
The stock has delivered positive returns of nearly 90.5 percent in one year, but around 30.3 percent of negative returns in the last six months.
RMC Switchgears Limited is a Jaipur-based power technology company primarily engaged in the business of Switchgear Engineering, ECI contracts or power distribution/transmission sector.
Written by Shivani Singh
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