Begin typing your search...

Servotech Power Systems' net jumps by 192% in H1 FY21

The net profit of Servotech Power Systems, a leading manufacturer of Solar, LED, Medical Grade devices and UVC products, jumped by 192 per cent at Rs 1.69 crore in the first half of the current fiscal, ending on 30 September, 2021

India’s solar energy capacity up 17x to 45GW in 7 years
X

India’s solar energy capacity up 17x to 45GW in 7 years

  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • koo

Mumbai, Nov 13 The net profit of Servotech Power Systems, a leading manufacturer of Solar, LED, Medical Grade devices and UVC products, jumped by 192 per cent at Rs 1.69 crore in the first half of the current fiscal, ending on 30 September, 2021. The company had registered the net loss of Rs 1.83 crore in the year-ago period.

The company has its stock expected to trade at 3x the value than it is currently doing. In their Board of Directors meeting held on November 12, the company announced their half-yearly financial results H1.

The company generated a revenue of Rs 51.95 Cr in the first six months of FY22 as against Rs 17.63 Cr in the same period last fiscal, registering a growth of 195 per cent. The company delivered a profit of Rs 2.41 Cr and EBITDA of Rs 3.7 Cr. As of September, Servotech's net debt position was lower by 18 per cent when compared to the year-ago period.

Also, considering the market benchmark PE Ratio of 29.4 per cent, Servotech's PE Ratio has improved markedly over the preceding half-year standing at 11.1 per cent, which also hints that the share is largely undervalued and holds a prospect of seeing the considerable surge in the share price.

The same is also substantiated by the dividends that were paid out to the existing shareholders, which was done for the first time since the Company went public. Also, keen market-players are viewing this augmentation to be a potential promising gain.

This half-year has been a particularly well-performing one for the company as the organization has ventured into several other business streams and hence successfully managed to diversify their scope of operations.

Raman Bhatia, Founder & MD, Servotech Power Systems, said, "The renewable energy sector has seen a boom in demand for solar equipment. We responded with proactive production enhancement projects as a significant participant in the solar industry, and we are currently reaping the fruits of our flexible reaction to demand with an extraordinary half-year. We intend to concentrate on activities aimed at increasing capacity and enforcing digital infrastructure regulations."

With the outset of the pandemic, Servotech has scaled up its operations especially by expanding its reach over COVID-induced supplies which were a pressing need of the hour during India's 2nd wave of COVID. Also, considering the massive uncaptured solar market, the company finds itself in the perfect position to tap into the huge potential that lies in both commercial and residential verticals, alluding to the fact that there are massive potential gains in sight for them.

Kumud Das
Next Story
Share it