Power & Instrumentation (Gujarat) has recently clinched a significant contract worth ₹21.39 crore from ATS Techno Limited. This new project involves the construction of a factory shed, showcasing the company's capabilities in industrial infrastructure development.

Contract Details

The comprehensive nature of this contract underscores Power & Instrumentation (Gujarat)'s expertise in delivering end-to-end solutions for industrial projects. By securing this order, the company demonstrates its strong position in the market and its ability to win substantial contracts in the industrial sector.

Project Scope and Timeline

The contract encompasses a wide range of services, including:

• Design of the factory shed
• Supply of necessary materials and equipment
• Installation of the structure and associated systems
• Testing of all installed components
• Commissioning of the completed project

With a stipulated completion time of 12 months, Power & Instrumentation (Gujarat) has set a clear timeline for the project's execution. This timeframe suggests a balance between efficient project management and the complexity of the work involved.

Market Implications

This contract win could have several potential implications for Power & Instrumentation (Gujarat):

1. Revenue Contribution: The ₹21.39 crore project may contribute to the company's revenue stream over the project duration.
2. Portfolio Expansion: Successfully executing this project could potentially lead to similar contracts in the future, possibly expanding the company's project portfolio.
3. Industry Recognition: Completing a project for ATS Techno Limited may enhance Power & Instrumentation (Gujarat)'s reputation in the industry.

As the project progresses, investors and market watchers may keep an eye on Power & Instrumentation (Gujarat)'s execution capabilities and any potential impact on its financial performance in the coming quarters.

Power & Instrumentation (Gujarat) Limited (PIGL), a prominent player in the electrical contracting and infrastructure development sector, has announced securing orders worth ₹102.78 crores from Ajmer Vidyut Vitran Nigam Limited (AVVNL) under the Revamped Distribution Sector Scheme (RDSS). This development marks a significant milestone for the company in its contribution to India's power distribution modernization efforts.

Project Details

The orders encompass two separate projects for the development of distribution infrastructure in Rajasthan:

Both projects are to be executed on a turnkey basis and have a timeline of 15 months for completion.

Strategic Significance

These orders follow PIGL's earlier success in August, when the company was awarded a ₹70.55 crore contract by AVVNL for similar work under the RDSS scheme. The repeat orders from the same client within a short span demonstrate AVVNL's confidence in PIGL's expertise and execution capabilities.

Management Commentary

Mr. Padmaraj Padmnabhan Pillai, Managing Director of Power & Instrumentation (Gujarat) Limited, commented on the development, stating, "This is the second major order we have received from Ajmer Vidyut Vitran Nigam Limited under the RDSS scheme within a short span of time, which is a strong validation of PIGL's execution strength and reliability. Each new project not only expands our portfolio but also strengthens our role in supporting the government's mission of modernizing India's power distribution infrastructure."

Company Background

Founded in 1975, Power & Instrumentation (Gujarat) Limited has established itself as a leading force in the electrical contracting sector. The company specializes in providing comprehensive Engineering, Procurement and Construction (EPC) solutions across the power transmission and distribution sector. PIGL has a track record of completing over 35 airport projects, electrifying more than 1,00,000 BPL households, and laying over 20,000 km of HT & LT lines.

In May 2023, PIGL successfully migrated to the main boards of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), marking a significant milestone in its growth journey. The company reported standalone total income of ₹171.28 crores, EBITDA of ₹19.59 crores, and net profit of ₹11.75 crores.

These new orders under the RDSS scheme are expected to contribute positively to PIGL's order book and financial performance in the coming quarters, further solidifying its position in the power infrastructure sector.