Power & Instrumentation , a company specializing in power and instrumentation solutions, has announced a significant new contract in the renewable energy sector. The company has secured a work order worth Rs. 9.5 crore from Sadashiv Projects India Private Limited for a 5 MWP solar ground-mounted project in Gujarat.

Project Details

The contract encompasses a comprehensive scope of work, including:

• Design and engineering services
• Supply of materials and equipment
• Testing for the 5 MWP solar ground-mounted installations
• Various additional services

The project will be implemented at multiple locations across Gujarat, showcasing the company's capability to handle distributed solar installations.

Contract Value and Timeline

The work order, valued at Rs. 9.50 crore (Nine Crore Fifty Lakh), excludes Goods and Services Tax (GST). This substantial contract underscores the company's growing presence in the solar energy sector. The project has been given a tight timeline, with completion scheduled within 6 months from the date of award.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Power & Instrumentation has made a formal disclosure to the National Stock Exchange of India Limited and BSE Limited.

Key Points of the Contract

Business Implications

This contract represents a strategic move for Power & Instrumentation, potentially strengthening its position in the renewable energy market. The company's ability to secure such projects may indicate growing demand for solar energy solutions in Gujarat and could lead to future opportunities in the sector.

Corporate Governance

The company has confirmed that this contract does not involve any related party transactions. Additionally, neither the promoter nor the promoter group has any interest in Sadashiv Projects India Private Limited, the entity awarding the contract.

As the renewable energy sector continues to expand in India, contracts like these highlight the ongoing opportunities for companies specializing in solar power infrastructure. Power & Instrumentation's success in securing this project may be indicative of its competitive edge in the market and its ability to contribute to India's growing clean energy capacity.

Power & Instrumentation (PIGL), a leading player in the electrical contracting sector, has reported robust financial results for the first quarter, demonstrating strong growth across key metrics.

Financial Highlights

PIGL's net profit for Q1 surged by 40.18% year-on-year, reaching ₹2.62 crores compared to ₹1.87 crores in the same quarter of the previous year. This impressive growth in profitability underscores the company's operational efficiency and strong market position.

The company's total revenue witnessed a significant increase, rising to ₹41.55 crores from ₹26.00 crores in the corresponding quarter of the previous year, marking a substantial growth of nearly 60%.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw an improvement, increasing to ₹4.28 crores from ₹3.65 crores in the previous year's quarter.

Key Financial Metrics (Q1 vs Q1 Previous Year)

Significant Order Wins

PIGL has secured two major orders, further strengthening its project pipeline:

1. A ₹57.89 crore order from Nyati Engineers and Consultants Private Limited for the electrification of Udaipur Airport, Rajasthan. This project encompasses design, supply, installation, testing, commissioning, and final handover of comprehensive power supply infrastructure, with a six-month execution timeline.

2. A ₹70.55 crore order from Ajmer Vidyut Vitran Nigam Limited for the supply, erection, installation, testing, and commissioning of distribution infrastructure for on-grid electrification on a turnkey basis. This project has a 12-month duration from commencement.

Strategic Appointment

PIGL has appointed Mr. Kasivishwanath as President of Operations. With over two decades of experience in the manufacturing and EPC sectors, Mr. Kasivishwanath brings valuable expertise in managing large-scale power infrastructure projects and driving strategic business development.

Expansion Plans

The company has announced plans to increase its stake in Peaton Electricals Company Limited (PECL) from 15% to 60%. PECL has secured a prestigious Siemens license to manufacture, assemble, and sell SIEPAN 8PU low-voltage switchboards, which is expected to enhance PIGL's technological capabilities and market reach.

Management Commentary

Padmaraj Padmnabhan Pillai, Managing Director of PIGL, commented on the results: "We are pleased to report a strong start, with our net profit growing by an impressive 40.18% year-on-year, reflecting the continued strength of our execution capabilities and resilient business model. This milestone performance is particularly meaningful as we proudly celebrate 50 years of operations – an enduring legacy built on trust, innovation, and excellence."

Future Outlook

With a strong order book, strategic expansions, and a focus on high-value infrastructure projects, PIGL is well-positioned for continued growth. The company's entry into the solar EPC and Battery Energy Storage Systems (BESS) markets, along with its participation in government initiatives like the Revamped Distribution Sector Scheme (RDSS), indicates a clear strategy for diversification and sustainable growth in the evolving energy sector.

Power & Instrumentation's robust Q1 performance, coupled with its strategic initiatives, underscores the company's strong position in the electrical contracting and infrastructure development sectors, setting a positive tone for the fiscal year ahead.