During Wednesday’s trading session, the shares of one of the leading industrial services and construction companies providing services in the power and infrastructure sector surged nearly 5.2 percent to Rs. 2,699.95 on BSE, after securing an order worth Rs. 294 crores from Adani Power for a Thermal project.
With a market capitalisation of Rs. 8,473.3 crores, at 02:11 p.m., the shares of Power Mech Projects Limited were trading in the green at Rs. 2,680.05, up by nearly 4.4 percent, compared to its previous closing price of Rs. 2,567.75.
What’s the News:
According to 1st January regulatory filings with the stock exchanges, Power Mech Projects Limited received an order valued at Rs. 294 crores from Adani Power Limited for a Thermal project.
The scope of work includes overhauling services, condition assessment, erection, testing, commissioning and manpower assistance for the Performance Guarantee Test of the Steam Generator (SG) and Steam Turbine Generator (STG) and their auxiliaries for Units 3 and 4 of 2×660 MW Korba Phase-II Thermal Power Project.
The project timeline specifies that the SG and STG for Unit 3 must be completed within 12 months from the issuance of the Notice to Proceed, while the work for Unit 4 is to be executed within 18 months from the same notice date.
Previous News & Orders:
On 22nd August, the company’s Board decided to issue bonus shares in the 1:1 ratio, with the record date fixed to Tuesday, October 8, 2024.
Accordingly, 1 new fully paid-up equity share of Rs. 10 each will be issued for 1 fully paid-up equity share of Rs. 10 each held by the shareholders.
On 26th December, Power Mech was awarded a Rs. 186 crore contract by Jaiprakash Power Ventures Limited (JPVL) to provide Field O&M services for the 660 MW Jaypee Nigrie Super Thermal Power Plant in Nigrie, Madhya Pradesh. The agreement spans five years, from 1st January 2025, to 31st December 2029.
Financials
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 11 percent from Rs. 932 crores in Q2 FY24 to Rs. 1,035 crores in Q2 FY25.
Similarly, its net profit increased during the same period from Rs. 51 crores to Rs. 70 crores, indicating a growth of 37.3 percent YoY.
On a year-on-year basis, the EBITDA increased from Rs. 118 crores in Q2 FY24 to Rs. 134 crores in Q2 FY25, registering a growth of 13 percent, with the EBITDA margin rising from 12.57 percent to 12.7 percent, over the same period.
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Order Book & Management Guidance
As of 30th September, Power Mech Projects Limited reported an order inflow of Rs. 3,055 crores. This inflow was primarily driven by Operations & Maintenance (O&M) works, which accounted for 60.9 percent, followed by Civil & Other Works at 31.3 percent, and Erection works at 7.8 percent
During the same period, the company’s order backlog reached Rs. 58,067 crores, with Mining works making the largest contribution at 68.3 percent. Erection accounted for 10.9 percent, Civil & other works contributed 13.5 percent, O&M contributed 5.7 percent, and Electrical Works made up the remaining 1.6 percent.
The management is confident of achieving revenue growth in the range of 25-30 percent for FY25 and has set a target of Rs. 12,000 crores for its order intake in the same financial year.
Stock Performance
The stock has delivered positive returns of nearly 19.7 percent in one year, as well as around 9 percent returns in the last six months. In contrast, the shares of Power Mech Projects have given negative returns of about 2.2 percent in the last one month.
About the Company
Incorporated in 1999, Power Mech Projects Limited is an engineering and construction company engaged in providing integrated service in the erection, testing and commissioning (ETC) of boilers, turbines and generators and balance of plant (BOP), civil works and operation and maintenance (O&M).
Written by Shivani Singh
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