In This Article:
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Total Income: INR 200 crore, a growth of 131.1% compared to the same quarter of FY 23-24.
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EBITDA: INR 19.29 crore, reflecting a growth of 223.2%.
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Net Profit: INR 11.22 crore, an increase of 260%.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Servotech Power Systems Ltd (NSE:SERVOTECH) reported a substantial growth in total income by 131.1% compared to the same quarter of the previous financial year.
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The company's EBITA increased by 223.2%, and net profit surged by 260%, reaching 95% of the entire financial year 23/24 profit.
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Servotech has successfully secured significant orders for DC fast chargers from major oil marketing companies and various automobile OEMs.
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The company launched a new range of solar inverters, including hybrid and microinverter energy storage systems, showcasing its commitment to innovation in sustainable energy technology.
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Servotech is expanding its dealer and distributor network rapidly to increase market reach for its solar products, indicating a strong growth strategy.
Negative Points
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The company faces challenges in infrastructure development and marketing, which could impact production capacity and ecosystem development.
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There are bottlenecks in infrastructure development for EV chargers and EV cars, which may hinder growth in this segment.
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Servotech's export business is still in the sampling phase, with no regular supply orders yet, indicating potential volatility in international revenue.
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The company is heavily reliant on raw material imports, particularly from China, which could affect cost structures and margins.
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Increased competition in the EV segment could pressure margins as more players enter the market.
Q & A Highlights
Q: Can you provide clarity on the government's policy changes regarding charging infrastructure and how it affects Servotech? A: The government has been supportive, with state agencies like Haryana taking initiatives. However, specific policy details are not within my purview. We continue to adapt to these changes to enhance our infrastructure offerings. - Raman Bhatia, Managing Director
Q: What is the current capacity utilization for your charging stations, and what are your future plans? A: Currently, our capacity utilization is around 60%. We aim to increase this as we expand our infrastructure and improve our ecosystem. - Raman Bhatia, Managing Director
Q: Could you elaborate on your CapEx plans and how they align with your growth strategy? A: We are investing in both electrical and electronics assembly lines to support our solar business expansion. This aligns with our strategy to enhance production capabilities and market reach. - Raman Bhatia, Managing Director