Servotech Power Systems Q4 Results: Revenue Up 13.89% To Rs. 136.65 Cr; Net Profit Jumps 6.69%

During the Board of Directors meeting on May 9, 2024, Servotech Power Systems Ltd. (NSE: SERVOTECH) announced its financial results for the quarter and year ended March 31, 2024. Total revenue climbed 13.89% in Q4 FY24 to Rs. 136.65 Cr. and 27.49% in FY24 to Rs. 355.26 Cr on a year-on-year basis. The growth rates were driven by the targeted customers' strong demand for our tech-enabled solutions in the solar and electric vehicle (EV) spaces. In FY24, PAT rose by 6.69% to Rs. 11.80 Cr. EBITDA rose by 18.05% to Rs. 22.36 Cr in FY24 as a result of expanding operations driven by higher-value products and enhanced productivity.

Servotech's Managing Director, Raman Bhatia, commented, "We have reported a powerhouse results and our impressive growth can be attributed to our goal of delivering cutting-edge, technologically advanced solutions in the EV and solar sectors. We've made significant strides in enhancing product quality and efficiency, which has made our products the preferred choice of our target audience, consequently driving market growth.

We have increased our manufacturing capacity and have also introduced impactful innovations in EV chargers and solar solutions. Having deployed more than 5600 EV chargers we are delighted to maintain a strong foothold as a key player in the EV charging industry, holding the potential to capture significant market share in the EV charging solutions segment."

"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," Raman Bhatia further added.

Commenting on the performance of the financial year 2024, the management team of Servotech Power Systems said, "We are happy to share our financial and operational performance for the Financial Year 2024. During this period, our revenue increased by 27.5% to Rs 35,526.5 lakhs in FY24, compared to Rs 27,864.3 lakhs in FY23. Further, EBITDA grew by 18.0% to Rs 2,236.5 lakhs in FY24 from Rs 1,894.9 lakhs in FY23, and margins remained stable at 6.3%. Additionally, PAT for FY24 stood at Rs 1,180.2 lakhs, with margins margins standing at 3.3%. This performance can be attributed significantly to the accelerating adoption of electric vehicles (EVs). As the market for EVs continues to expand rapidly, so does the demand for EV charging infrastructure, which forms a core component of our business. Moreover, our strategic positioning within the EV charging sector has enabled us to capitalize on this growing market opportunity effectively. By supplying a substantial number of chargers to meet the rising demand, we have solidified our presence and captured a significant market share."

"Currently, we hold a considerable market share in the EV charging sector, having deployed ~5,600 chargers across India by March 31, 2024. Moreover, we are a partner of choice for prominent OEM's and the testimony to same lies in our recent order wins from HPCL and IOCL worth ₹213 Crs and successful completion of supply of 2,649 AC chargers to BPCL. Our vision extends far beyond mere infrastructure development. We are actively expanding our production capacity and diversifying our product range, positioning SPSL as the foremost provider of EV chargers to OEMs. This strategic evolution is a direct response to the growing demand in the EV market, reinforcing our position as a significant industry leader. Amidst these endeavors, our commitment to delivering customer-centric solutions within the sustainable energy sector remains steadfast. With a clear vision, strategic partnerships, and a proven history of success, SPSL is ready to assume a pivotal role in shaping India's sustainable future. We are enthusiastic about leveraging our leadership position to contribute to a cleaner and more ecofriendly tomorrow," the management further added.

Servotech Power Systems is an NSE-listed company which employs more than 20 years of experience and knowledge in the electronics industry to offer tech-enabled EV charging solutions. It offers a wide variety of AC and DC chargers that are compatible with various EVs and have multiple applications, including residential and commercial.

On Friday, the shares of Servotech Power Systems were trading at Rs 82.05 during the afternoon session. The stock made a 52-week-high of Rs 108.70 on (06-Feb-2024) and a 52-week-low of Rs 30.48 on (11-May-2023).

Commenting on the share price target, AR Ramachandran from Tips2trades said, "ServoTech Power stock price is bearish with strong resistance at 85.15 on the Daily charts. A Daily close below support of 81 could lead to a target of 73 in the near term,"