Engineering stock engaged in the business of erection, testing, commissioning, operation, and maintenance of boilers, power plants, sub-critical power projects and many more jumped 3 percent in the day’s trade upon receiving a work order worth Rs. 563.23 Crores from BHEL PSSR.
With a market capitalization of Rs. 7,623 Crores, the shares of Power Mech Projects Limited were trading at Rs. 4,822 per equity share, up 2.41 percent from its previous day’s close price of Rs. 4,708.60.
Power Mech Projects Limited has received its first construction project in the critical nuclear power sector from BHEL PSSR (Power Sector Southern Region) for a consideration of Rs. 563.23 Crores, for the Civil Structural and Architectural works of Turbine Island Package of 2X700 MWe PHWR Kaiga Atomic Power Project, Unit 5 and 6, situated in Uttara Kannada District, Karnataka.
The scope of work includes a number of segments covering civil, electrical, and structural works like TG building, Foundation for all equipment, chemical lab, Storage tanks, Peripheral drains, sewage network, storm water drains, culverts, plinth protection, Pipes and cable bay, Condenser cooling water pipes, Plumbing and sanitary works and many more.
The said work order is to be executed in 32 months and it represents a significant step forward for Power Mech Projects Limited’s diversification of its existing capability into a new sector and the company’s commitment to supporting the country’s energy.
Commenting on the project award, Mr. Sajja Kishore Babu, Chairman and Managing Director said This historic accomplishment is a testament to PMPl’s proven credibility and continuous track record in managing complex projects, and its ability to meet the stringent quality and safety requirements in the nuclear power industry. In securing this project, another door opens for PMPL to further its establishment in the nuclear power sector and contribute to the nation’s growing sustainable energy needs.
Nuclear power is on the cusp of a significant transformation in India with a large scope for expansion. While Nuclear power currently contributes a modest 3 percent to the national grid, the government’s bold vision is to triple the capacity to 22, 480 MW by 2031, making it nearly 9 percent of electricity generation by 2047.
This would be a spectacular achievement, which translates into a tenfold increase in nuclear power’s contribution. We are proud and happy to play a part in the nuclear power sector’s growth in the country and are confident to undertake more projects that align with our ambitious tradition.”
Power Mech Projects Limited is an engineering and construction company engaged in the business of erection, testing, commissioning, operation, and maintenance of boilers, power plants, sub-critical power projects, infra projects, and many more across sectors like Mining, roads, water, Industrial plants, and others.
Power Mech Projects Limited has a strong order book worth Rs. 57,053 Crores, with 153 total ongoing projects of which 69 are O&M/ AMC projects(domestic) and 24 overseas projects.
It has a good client base with well-known players like BHEL, ONGC, JSPL, Siemens, Tata Power, Adani, Dangote, CESC, Vedanta, Coal India and many others.
Its Revenue from operations grew by 16.81 percent from Rs. 3,601 Crores in FY23 to Rs. 4,207 Crores in FY24, accompanied by profits of Rs. 207 Crores to Rs. 249 Crores.
Written by: Bharath K.S
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