Servotech Rings in 84% Increase in Profits in Q3 for FY22-23

Manufacturer of solar, power-backup, electric Vehicle (EV) chargers, and other smart power solutions, Servotech Power Systems Ltd. (NSE: SERVOTECH), has revealed its quarterly financial results for the quarter ended December 31, 2022. The results were shared at its Board of Directors meeting on January 21, 2023.

Servotech Power Systems Ltd. has rung in a quarterly revenue of Rs. 82.54cr, reporting a YoY growth of around 116% from the last fiscal when it boasted of a revenue of Rs 38.23 cr. When compared to the previous fiscal, the firm achieved 72% boost in revenue over the last nine months, accounting for Rs 153.14cr in revenues as against 89.26cr in the last fiscal. Additionally, the firm delivered a gross profit of Rs. 14.15 cr during the third quarter of the financial year 2022-2023. This is a 36% surge more than was achieved in the third quarter of the last financial year. Further, the firm achieved an 84% jump in PAT than the last fiscal.

Managing Director Raman Bhatia, Servotech Power Systems Ltd., remarked, “This quarter turned out to be a strong period for Servotech. As expected, our Q3 profitability has seen a one-off impact of our strong market strategy, our expanded footprint, and advances on the channel front. With the bulk of the integration cost behind us and in view of the growth tailwinds ahead, our endeavour is to achieve even healthier profitability in Q4. Our impressive financial results demonstrate that we have greatly benefited our partners, clients, and other important stakeholders.” He went on to add, “Both our solar and EV charging products are creating lasting value and impact across the varied deployment of these solutions. There is also a greenfield of synergies and projects for us to explore. This will result in long-term and sustainable profitability. By expanding our pool of talent, stepping up our innovation efforts, and refining our go-to-market strategy, we will be able to provide our customers with smarter lifestyle solutions, scale up our team’s opportunities, and create profitable whitespaces for our clients.”

Growth Curve in 2022

In 2022, Servotech bagged several noteworthy projects. The Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) awarded a sizable, state-spanning grid-interactive rooftop solar power plant project to Servotech Power Systems, for the construction of 4.1 MW solar project all around the state. Following this, the firm acquired a second significant project from UPNEDA, for which the overall contract value is about Rs 30 crore.

Later in the year, it was awarded a major project by Bharat Petroleum Corporation (BPCL) for the supply and installation of 800 units of DC fast EV chargers at different locations across India. Servotech also struck an agreement with the National Solar Energy Federation of India (NSEFI), one of the leading solar bodies of India in December.