Servotech Power Systems Q3 EBITDA Surges 73% to ₹280 Million, Margin Expands
Servotech Power Systems delivered strong Q3 performance with EBITDA surging 73% to ₹280 million and margin expanding significantly to 13.27% from 7.49% YoY. The company also achieved 60% net profit growth to ₹147 million, demonstrating excellent operational efficiency despite a marginal 2.78% revenue decline to ₹2.1 billion.
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Servotech Power Systems has delivered impressive Q3 financial results, demonstrating strong operational performance with significant improvements in profitability metrics. The renewable energy solutions provider achieved substantial growth in both EBITDA and net profit while maintaining operational efficiency despite revenue challenges.
Financial Performance Overview
The company's Q3 consolidated results showcase robust profitability improvements across key financial metrics:
| Metric | Q3 Current Year | Q3 Previous Year | Change |
|---|---|---|---|
| EBITDA | ₹280 million | ₹162 million | +72.84% |
| EBITDA Margin | 13.27% | 7.49% | +577 bps |
| Net Profit | ₹147 million | ₹92 million | +60.00% |
| Revenue | ₹2.1 billion | ₹2.16 billion | -2.78% |
EBITDA Performance Excellence
Servotech Power Systems achieved exceptional EBITDA growth with consolidated EBITDA reaching ₹280 million in Q3, marking a substantial 73% increase from ₹162 million recorded in the corresponding quarter of the previous year. This remarkable improvement demonstrates the company's enhanced operational efficiency and effective cost management initiatives.
Margin Expansion Success
The company's EBITDA margin expanded significantly to 13.27% in Q3 compared to 7.49% in the same quarter last year, representing an improvement of 577 basis points. This substantial margin expansion indicates improved operational leverage and better project execution capabilities within the renewable energy sector.
Bottom-Line Growth
Complementing the strong EBITDA performance, Servotech Power Systems reported consolidated net profit of ₹147 million in Q3, representing a 60% increase from ₹92 million in the previous year's corresponding quarter. The consistent profitability improvements across both EBITDA and net profit levels highlight the company's comprehensive operational enhancement.
Revenue Dynamics
Despite strong profitability metrics, the company experienced a marginal revenue decline during Q3. Total revenue stood at ₹2.1 billion compared to ₹2.16 billion in the same quarter last year, reflecting a decrease of approximately 2.78%. However, the ability to achieve significant profit and margin growth amid revenue challenges demonstrates effective cost optimization and improved project mix execution.
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