The shares of the smart meter manufacturer hit 5 percent upper circuit of Rs 769.10 per share after the company signed a memorandum of understanding for the 1,000 MW Ultra Mega Solar Park Project.
With a market capitalization of Rs 792.81 crore, the shares of RMC Switchgears Ltd were trading at Rs 769.10 per share, increasing around 5 percent as compared to the previous closing price of Rs 732.50 apiece.
Reason for Rise:-
The company share have seen positive movement after RMC Switchgears Ltd signed a memorandum of understanding for the 1,000 MW Ultra Mega Solar Park with integrated battery storage. This MoU marks RMC’s key expansion into renewable energy and will play a key role in achieving the company’s growth objectives.
Furthermore, this project will take 2-3 years to execute and will play a part in meeting RMC’s target of implementing 1 GW greenfield projects, with a blend of EPC & IPP arrangements, this MoU will help the company to meet the 1 GW milestone.
Financial Performance:-
Looking forward to the company’s financial performance, revenue soared by 2 percent from Rs 87 crore in H1FY24 to Rs 85 crore in H2FY24, and during the time frame, net profit dipped by 125 percent from Rs 8 crore to Rs 7 crore.
Recent order:-
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).
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.
Company Profile:-
RMC Switchgears Limited is engaged in the business of switchgear engineering, construction contracts for the power distribution/transmission sector, and polyvinyl chloride (PVC) marble and solid surface. The Company is engaged in researching, designing, and manufacturing electronic smart energy meter enclosures, distribution boxes and panels, etc.
Written by:- Abhishek Singh
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