The shares of the electronic manufacturing services (EMS) provider gained up to 7.63 percent after the company’s subsidiary became the first company to receive approval for the disbursement of PLI incentives for AC Components.
With a market capitalization of Rs 4,610.81 crore, the shares of PG Electroplast Ltd were trading at Rs 1,779.00 apiece, increasing around 7 percent as compared to the previous closing of Rs 1,657.65 apiece.
According to the company filing, PG Technoplast, a wholly owned subsidiary of PG Electroplast Ltd became the first company to receive approval for the disbursement of PLI incentives for AC components.
Furthermore, the authorities approved the payment of incentives of Rs 15.00 crores to PG Technoplast, making it the only firm among the approved companies in its target category to gain this coveted clearance.
Looking into PG Electroplast Ltd, the company’s revenue increased by 16 percent, from Rs 459 crore in Q3FY23 to Rs 532 crore in Q3FY24. During the same period, net profit increased by 36 percent, from Rs 14 crore to Rs 19 crore.
PGEL specializes in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), and Plastic Injection Molding, serving over 60 major Indian and global businesses. PG employs about 5000 people and has eleven production facilities in Greater Noida, Uttar Pradesh, Roorkee, Uttarakhand, Bhiwadi, Rajasthan, and Ahmednagar, Maharashtra.
Over the past seven years, the company has expanded from Rs 263 crores in 2015-16 to Rs 2,160 crores in 2022-2023, with a 35% CAGR in sales and 36% CAGR in EBITDA. Over the last seven years, the firm has spent more than Rs 550 crore, which has greatly increased its development potential.
The company’s product business contributed 53.4% of the total revenues in 9MFY24. Room AC business at Rs 641 crores grew 29% during the period while the Washing Machines the business had a turnover of Rs 234 Crores.
PG Electroplast is a significant and diverse Indian provider of electronic manufacturing services. It specializes in Original Design Manufacturing (ODM), Original Equipment Manufacturing (OEM), and Plastic Injection Molding, serving over 50 major Indian and global businesses.
Written by:- Abhishek Singh
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