Pace Digitek Secures Rs 9,297.57 Crore Solar Power Plant Contract from MSPGCL

Pace Digitek Limited (PDL) has announced a significant milestone in its renewable energy portfolio by securing a substantial contract worth Rs 9,297.57 crore from Maharashtra State Power Generation Company Limited (MSPGCL). The project involves the design, engineering, manufacturing, supply, erection, installation, testing, and commissioning of a 200MW AC grid-connected ground-mounted solar PV power plant.

Contract Details

The scope of the project includes:

Design and engineering of a 200MW AC solar power plant
Manufacturing and supply of necessary equipment
Erection and installation of the plant
Testing and commissioning
Associated power evacuation arrangements
Three years of operation and maintenance services

The project is part of a larger 300MW AC initiative and includes the setup of power evacuation arrangements to the STU substation.

Project Timeline and Value

PDL is expected to execute this project within 450 days from the acceptance of the letter of award. The contract value, inclusive of taxes, stands at Rs 9,297.57 crore.

Market Impact

This large-scale project not only strengthens Pace Digitek's position in the renewable energy sector but also aligns with India's growing focus on solar power generation. The contract is expected to have an impact on the company's financial performance and market standing.

Company Background

Pace Digitek Limited, formerly known as Pace Digitek Private Limited and Pace Digitek Infra Private Limited, is emerging as a key player in India's infrastructure development, particularly in the digital and energy transition sectors.

Financial Performance

In a recent financial report, PDL reported the following consolidated figures:

Metric	Amount (in millions)
Total income from operations	Rs 5,334.46
Profit before tax	Rs 955.86
Profit after tax	Rs 678.64

These figures demonstrate the company's financial position as it takes on this significant new project.

The execution of this MSPGCL contract could impact Pace Digitek's financial position and its role in India's renewable energy landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.74%	-0.87%	+1.01%	-2.14%	-2.14%	-2.14%

Pace Digitek Limited , a player in the energy and telecom sectors, has reported a mixed set of financial results for the second quarter of fiscal year 2025. The company's consolidated performance shows a decline in revenue and profit compared to the same period last year, while its telecom segment continues to be the primary revenue driver.

Financial Highlights

Particulars (₹ in million)	Q2 FY2025	Q2 FY2024	YoY Change
Revenue from Operations	5,334.49	8,461.92	-37.0%
Total Income	5,970.66	10,342.18	-42.3%
EBITDA	941.00	1,870.00	-49.7%
EBITDA Margin	17.64%	22.10%	-446 bps
Net Profit	641.00	952.00	-32.7%

Pace Digitek experienced a significant year-over-year decline in its Q2 FY2025 performance:

Revenue from operations decreased by 37.0% to ₹5,334.49 million from ₹8,461.92 million in Q2 FY2024.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell by 49.7% to ₹941.00 million, with the EBITDA margin contracting by 446 basis points to 17.64%.
Net profit declined by 32.7% to ₹641.00 million from ₹952.00 million in the corresponding quarter of the previous year.

Segment Performance

The company's financial results reveal a contrast between its two main business segments:

Telecom Segment

Continues to be the primary revenue generator, contributing ₹4,168.41 million in Q2 FY2025.
Segment profit before interest and tax stood at ₹944.92 million.

Energy Segment

Showed significant growth, with revenue increasing to ₹1,735.62 million in Q2 FY2025 from ₹358.00 million in Q2 FY2024.
Segment profit before interest and tax was ₹41.62 million.

Strategic Developments

Pace Digitek has announced plans to acquire the remaining 6.13% equity stake in its subsidiary, Pace Renewable Energies Private Limited, making it a wholly-owned subsidiary. This move is expected to enhance operational efficiency in project transfers between the two entities.

Outlook

The contrast between the performance of the telecom and energy segments suggests that Pace Digitek may be experiencing sector-specific challenges. The company's decision to fully acquire its renewable energy subsidiary could be seen as a strategic move to strengthen its position in the energy sector, which has shown substantial growth over the past year.

Investors and analysts will likely be watching closely to see how Pace Digitek addresses the decline in overall performance and whether the company can leverage its strong telecom segment and growing energy business to improve its financial metrics in the coming quarters.