Power Mech Projects Limited, a leading industrial and infrastructure services provider, has reported a strong financial performance for the second quarter, with significant growth in revenue and a robust order book.

Financial Highlights

The company's Q2 performance showcased impressive year-over-year growth:

For the half-year period (H1), Power Mech Projects reported:

• Revenue of ₹2,531.00 crores, marking a 24% growth
• EBITDA of ₹340.00 crores, showing a 33% increase

Order Book and New Wins

Power Mech Projects has secured new orders worth ₹4,800.00 crores, including significant wins from major clients:

• BHEL: ₹2,500.00 crores
• Adani Group: ₹1,000.00 crores
• SJVN: ₹500.00 crores

The company maintains a total order backlog of ₹56,000.00 crores, providing multi-year revenue visibility.

Segment Performance

The company's revenue mix for Q2 shows a diversified portfolio:

Operational Highlights

• Power Mech Projects operates as India's largest O&M service provider, managing 75 GW capacity across power, industrial, and infrastructure segments.
• The company expects margin improvement from Q3 onwards, supported by scaling up of MDO operations and growth in regular business segments.

Management Commentary

The management of Power Mech Projects expressed optimism about the company's future performance. They highlighted the strong order inflow and the potential for margin improvement in the coming quarters, driven by the scale-up of MDO operations alongside growth in their core business segments.

Market Position

Power Mech Projects has established itself as a leading player in the industrial and infrastructure services sector. With a diverse portfolio spanning erection works, operations and maintenance, civil works, and mining development operations, the company is well-positioned to capitalize on India's growing infrastructure needs.

The robust order book of ₹56,000.00 crores provides a strong foundation for sustained growth. The company's strategic focus on high-value EPC projects and expansion into adjacent sectors like water and roads is expected to further strengthen its market position.

As Power Mech Projects continues to execute its growth strategy, investors and industry observers will be watching closely to see how the company leverages its strong order book and diverse capabilities to drive long-term value creation.

Power Mech Projects , a prominent player in the Indian engineering and construction sector, has announced its financial results for the second quarter of the fiscal year, showcasing strong growth across key metrics.

Financial Highlights

The company's consolidated performance for Q2 demonstrates significant year-over-year improvements:

Key Takeaways

1. Profit Growth: Power Mech Projects reported a substantial 16.5% increase in consolidated net profit, rising from ₹670.70 crore in the previous year to ₹781.10 crore in the current quarter.

2. Revenue Expansion: The company's revenue saw a notable uptick of 19.6%, reaching ₹1,238.00 crore compared to ₹1,035.00 crore in the same period last year.

3. EBITDA Performance: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 18.5% to ₹147.00 crore, up from ₹124.00 crore in the corresponding quarter of the previous year.

4. Margin Pressure: Despite overall growth, the EBITDA margin experienced a slight decline of 6 basis points, settling at 11.88% compared to 11.94% in the previous year's quarter.

Corporate Developments

In addition to the financial results, Power Mech Projects' Board of Directors approved an Employee Stock Option Plan (ESOP) during their recent meeting. Key details of the ESOP include:

• A total of 10,00,000 stock options to be granted, convertible into an equal number of equity shares.
• The plan is in compliance with SEBI regulations.
• Vesting will commence after a minimum of 1 year from the grant date and may extend up to 5 years.
• The exercise period will be 2 years from the date of respective vesting.

This ESOP initiative aims to align employee interests with those of the company and its shareholders, potentially boosting long-term performance and retention.

Power Mech Projects' strong Q2 results, coupled with the introduction of the ESOP, signal the company's commitment to growth and employee engagement. As the company continues to navigate the dynamic engineering and construction landscape, investors and market watchers will be keen to observe how these positive developments translate into sustained performance in the coming quarters.