Servotech Power Systems Ltd, a leading manufacturer specializing in cutting-edge Solar Products, Electric Vehicle (EV) chargers, and power-backup and smart power solutions, has reported a remarkable financial performance for the second quarter ending on September 30, 2023. The company unveiled these impressive results during the Board of Directors meeting on October 30, 2023.
During Q2 FY24, Servotech Power Systems recorded a staggering revenue growth of 115.2%, with total revenue reaching ₹8,659.09 lakhs. This remarkable achievement is in stark contrast to the ₹4,023.96 lakhs reported in the same period the previous year. The growth can be attributed to several factors, primarily the surging demand for their EV chargers in response to the increasing adoption of electric vehicles and the growing need for improved EV infrastructure. In addition, their Solar division continued to gain traction, driven by the mounting emphasis on sustainable energy solutions for power needs.
Servotech Power Systems also reported impressive figures in terms of profitability. Their EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) exhibited remarkable growth of 148.2%, reaching ₹597.01 lakhs in Q2 FY24, compared to ₹240.50 lakhs in Q2 FY23. This growth resulted in a margin expansion of 91 basis points, largely influenced by an increased share of products with superior profit margins. Moreover, the Profit After Tax (PAT) for Q2 FY24 soared to ₹312.41 lakhs, up from ₹78.04 lakhs in Q2 FY23, and the corresponding margins increased to 3.60% from 1.94%.
For the first half of the fiscal year (H1 FY24), Servotech Power Systems posted equally impressive results. Their revenue increased by 130.1% to ₹16,640.44 lakhs in H1 FY24, as compared to ₹7,230.48 lakhs in H1 FY23. The company’s EBITDA showed a remarkable growth of 245.8%, rising from ₹378.86 lakhs in H1 FY23 to ₹1,309.92 lakhs in H1 FY24. This growth resulted in margins increasing to 7.87% from 5.24% during the same period due to an increase in the scale of operations. The PAT surged by an astounding 536.8%, reaching ₹723.37 lakhs in H1 FY24, compared to ₹113.60 lakhs in H1 FY23, and the corresponding margins improved to 4.35% from 1.57%.
Commenting on these outstanding results, Servotech Power Systems Ltd. Managing Director, Raman Bhatia, emphasized the company’s commitment to delivering cutting-edge, technology-driven solutions in the fields of electric vehicles and solar energy. He attributed their success to a relentless dedication to enhancing product quality and efficiency, which has solidified their position in the sustainable energy sector and maintained a significant market share in EV charging solutions. He also highlighted their strategic partnerships and collaborations with esteemed institutions and government initiatives like ‘Make in India,’ which have been instrumental in reshaping the landscape of EV charging infrastructure and the solar industry.
In conclusion, Bhatia stated, “We remain firmly committed to our vision of delivering customer-centric solutions in the realm of sustainable, clean, and green energy. As we step into the future, we are closely aware of the substantial potential within the markets we serve and are well-prepared to seize the growth opportunities that lie ahead. We take immense pride in our role in advancing the EV Charging Infrastructure and Solar industry and are dedicated to maintaining our leading position in this dynamic industry.”
