FII Backed Stock Hit 5% Upper Circuit On Order Win of International Solar EPC Project of Rs 101.6 Cr

Gensol Engineering Ltd is a small cap company dealing in commercial services. The opened higher today on the BSE at Rs 1690 apiece and hit a 5% upper circuit limit at Rs 1,747 during the afternoon deals. Following the company's announcement that it had received it's first two turnkey international Solar Engineering, Procurement, and Construction (Solar EPC) deals in Dubai with the Dubai Government Workshop Warehouse and Dubai Police, a rally in the share price was witnessed.

Today, the company announced the first two turnkey international Solar Engineering, Procurement, and Construction (Solar EPC) projects it would be working on in Dubai with the Dubai Police and Dubai Government Workshop Warehouse. Without calculating taxes, these projects add up to a total order value of INR 101.6 Crores, with a capacity of 14.08 MWp.

With these order wins, Gensol Engineering said it will gain access to a large market that is full of dynamism, vibrancy and an untapped potential for renewable energy solutions that deliver positive impacts on both Indian and UAE markets.

The two turnkey contracts with the Dubai Police and the Dubai Government Workshop Warehouse comprise the design, engineering, supply, establishing, erection, testing, and commissioning of these projects as well as their operation and maintenance. The Dubai Police project is projected to open in June 2024, while the Dubai Government Workshop Warehouse project is expected to be completed in November 2023. Both projects are positioned to support the UAE's Clean Energy Strategy 2050 and strengthen Gensol's standing as a reliable supplier of sustainable solutions.

Commenting on winning international orders, Mr. Anmol Singh Jaggi, Managing Director, Gensol Engineering Limited said, "We are delighted with the new prestigious order wins in Dubai. With this, we also venture into international markets and mark a significant step towards fulfilling our vision of driving sustainable energy transitions globally. In addition, there are multiple orders to be announced in the coming months."

On a consolidated basis, the firm said that its revenue increased to Rs 151.70 Cr in the June 2023 quarter, up 48.80% YoY from Rs 102.90 Cr in the corresponding quarter last year. Its EBITDA jumped by 179% YoY to Rs 43.70 Cr in Q1FY24 from Rs 15.70 Cr in Q1FY23, and its EBITDA margin climbed by 1362 bps from 15.2% to 28.8% in Q1FY24. In the first quarter of FY24, Gensol Engineering reported a consolidated net profit of Rs 10.20 Cr, up 2% YoY from Rs 10 Cr in the same quarter the previous year.