Shares of Servotech Power Systems hit an upper circuit of 5 per cent on Monday after the company reported a strong performance for the quarter ended on March 31, 2023. The New Delhi-based company reported a 365 per cent year-on-year rise in the net profit at Rs 6.05 crore for the March 2023 quarter compared to a net profit of Rs 1.30 crore in the same period last year. Additionally, net profit rose over 56 per cent on a sequential basis from Rs 3.87 crore in December 2022 quarter.
This stellar performance has been largely attributed to a surge in Servotech’s revenue from operations which grew by over 125 per cent to Rs 115.30 crore in the fourth quarter of the previous fiscal year, from Rs 51.06 crore in the same quarter previous year. The company reported an operational revenue of Rs 83.27 crore in the preceding December quarter.
Following the strong performance, shares of Servotech Power Systems surged 5 per cent, hitting their upper circuit limit, to Rs 58.20 on Monday. The scrip had settled at Rs 55.45 on Friday. The company’s market capitalization stood little shy of Rs 620 crore.
The company’s shares have turned multibagger after the stock gained over 240 per cent in the last one year. In 2023, the counter has rallied about 80 per cent so far. The stock has gained about 35 per cent in the last one month.
For the entire year ended on March 31, 2023, Servotech reported a 170 per cent jump in the net profit at Rs 11.06 crore against Rs 4.06 crore in the year-ago period. Additionally, revenue from operations surged 88 per cent to Rs 269.57 crore during the period under review.
Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products, and medical devices in the country. The company has been performing consistently well, and the latest results indicate that the trend is set to continue. In a statement released to the media, a spokesperson for Servotech said that the company is committed to providing high-quality products and services to its customers.
Investors have responded positively to Servotech’s performance, with many analysts predicting that the company’s shares are likely to continue to perform well in the near future. The strong results have also given the company a much-needed boost in a highly competitive market.
The surge in the company’s revenue from operations can be attributed to several factors, including the increasing demand for EV charging solutions and solar products in the country. With the government pushing for the adoption of electric vehicles and renewable energy, Servotech’s products are likely to remain in high demand in the coming years.
Furthermore, the company has also been able to leverage its expertise in the medical device segment to expand its operations in the country. The COVID-19 pandemic has highlighted the importance of medical devices, and Servotech has been at the forefront of providing high-quality products to meet the growing demand.
The surge in revenue from operations is a testament to the company’s ability to adapt to changing market conditions and provide innovative solutions to its customers. With the government’s push towards renewable energy and electric vehicles, Servotech’s products are likely to remain in high demand.
Overall, Servotech’s strong performance in the latest quarter has put the company in a good position to capitalize on the growing demand for EV charging solutions, solar products, and medical devices in the country. The company’s commitment to providing high-quality products and services is likely to help it maintain its position as a leading player in the market. With the stock turning multibagger, investors can look forward to good returns in the near future.
