Shares of this power transmission stock reached the upper price band on Wednesday after winning an EPC and O&M contract valued at Rs.201 crores for developing a solar power project designed to solarize agricultural feeders in Maharashtra.
Price Movement
In Wednesday’s trading session, RMC Switchgears Limited‘s share price reached the 5 percent upper circuit at Rs.789.05 per share, rising from its previous close of Rs.751.50 apiece. The share has retreated since then and is currently trading at Rs.772.70 per share.
Contract Specifications
RMC Switchgears Limited has been awarded a contract as the lead member of a consortium to solarize agricultural feeders in Maharashtra. Secured through a competitive bidding process and e-reverse auction, this milestone includes three separate EPC contracts and three years of O&M contracts in Ahmednagar district, totaling Rs.201 crores (including GST).
These orders reinforce RMC Switchgears Limited’s commitment to renewable energy and India’s climate action goals under the Paris Agreement. The company is also pursuing additional tenders exceeding 500 MWp, aiming for a total of 1 GWp in renewable energy.
RMC is collaborating with installation and commissioning experts and leveraging its skilled in-house team to lead the green energy revolution. Its expansion into solar projects aims to reduce carbon emissions, promote economic growth, and create green jobs, contributing to India’s goal of achieving 450 GW of renewable energy capacity by 2030.
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Capacity Expansion and New Developments
RMC Switchgears Limited has expanded its production capacity to 3,00,000 Sheet Molding Compound (SMC) enclosures annually, with an estimated capital expenditure of Rs. 7-10 crore for this enhancement.
Demand for smart water meters is expected to rise to 5,00,000 units by 2025, driven by government initiatives such as the Jal Jeevan Mission. In response, RMC Switchgears launched a subsidiary, Intelligent Hydel Solutions Pvt. Ltd., in 2024 to enhance water IoT solutions. This initiative focuses on improving smart management, distribution, treatment, and monitoring of water resources.
Reputed Clientele
RMC Switchgears boasts a reputable client roster that includes notable names from state utilities and major private companies, such as Maharashtra State Electricity Distribution Co. Ltd, Uttar Pradesh Power Corporation, Larsen & Toubro, Bajaj Electricals, TATA Projects Limited, Adani Energy Solutions, NTPC, and GAIL.
Financial Overview
The company reports financial results on a half-yearly basis. In H2FY24, the company’s revenue from operations surged by 27 percent year-on-year, reaching Rs.85 crore, up from
Rs.67 crore in H2FY23. Additionally, the company’s Profit After Tax (PAT) surged 17 percent to Rs.7 crore in H2FY24, compared to Rs.6 crore in H2FY23.
About the company
RMC Switchgears manufactures a variety of products, including electronic smart energy metre enclosures, distribution boxes, feeder pillars, and circuit protection materials. Their offerings cater to both low-tension and high-tension applications, ensuring safety and efficiency in electrical systems.
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Written by – Siddesh S Raskar
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