Sanghvi Movers Limited (SML) has announced a significant development for its material subsidiary, Sangreen Future Renewable Private Limited. The company has secured work orders worth Rs. 292.00 crores from various Independent Power Producers (IPPs) in the wind energy sector.

Project Details

The awarded contracts involve comprehensive Wind Balance of Plant (BOP) services, which include:

• Construction of Wind Turbine Generator (WTG) civil foundations
• Development of internal roads and crane platforms
• WTG transportation and installation
• Mechanical completion
• Internal 33Kv line works
• Development of DP yards

Timeline and Execution

The projects are scheduled to commence from the second quarter of the fiscal year 2025-26 and are expected to be completed by the first quarter of FY 2026-27. This timeline suggests a focused approach to project execution over approximately a one-year period.

Financial Implications

The aggregate order size of Rs. 292.00 crores represents a substantial boost to Sangreen Future Renewable's order book. This development is likely to have a positive impact on Sanghvi Movers Limited's financial outlook for the coming fiscal years.

Market Position and Strategy

Securing these orders from prominent IPPs underscores Sangreen Future Renewable's growing presence in the wind energy sector. It also aligns with the broader trend of increasing investments in renewable energy infrastructure across India.

Corporate Governance

Sanghvi Movers Limited has confirmed that these orders are from domestic entities and do not involve any related party transactions. This transparency in disclosure adheres to the regulatory requirements set by the Securities and Exchange Board of India (SEBI).

The company made this announcement in compliance with Regulation 30 of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015. The disclosure was signed by Vinav Agarwal, Company Secretary & Chief Compliance Officer of Sanghvi Movers Limited.

This development marks a significant step for Sanghvi Movers Limited and its subsidiary in the renewable energy sector, potentially strengthening their position in the wind energy infrastructure market.

Sanghvi Movers Limited , one of India's largest crane rental companies, has reported a strong start to the fiscal year, with a 65% year-on-year growth in total income for the first quarter. The company's expansion into Saudi Arabia and diversification into wind EPC business have contributed to its robust performance.

Financial Highlights

Sanghvi Movers achieved a total income of ₹273.00 crores in Q1, compared to ₹151.00 crores in the same quarter last year. The company's EBITDA margin stood at 38%, while net profit reached ₹50.00 crores.

The crane rental business, which remains the company's core operation, generated revenue of ₹159.00 crores with an impressive EBITDA margin of 56%. The wind EPC business, operated through the subsidiary Sangreen Future Renewables Private Limited, contributed ₹106.00 crores to the revenue with an 11% EBITDA margin.

Operational Performance

The company reported an improvement in average capacity utilization, which increased to 80% from 77% in the previous year. The average blended yield also saw a slight uptick, reaching 2.11% compared to 2.04% in the same quarter of the previous fiscal year.

Sanghvi Movers added 21 cranes during the quarter as part of its ongoing fleet expansion. The company plans to add a total of 75-80 cranes this fiscal year, with a revised CAPEX of ₹321.00 crores for the year.

Saudi Arabia Expansion

In a significant move, Sanghvi Movers has expanded its operations to Saudi Arabia through its wholly-owned subsidiary, Sanghvi Movers Middle East. The company has already deployed 12 cranes in the country and secured its first order, marking a successful entry into this new market.

Rishi Sanghvi, Managing Director of Sanghvi Movers, expressed optimism about the Saudi Arabian market, citing over $500 billion worth of construction projects announced in the country. The company aims to become one of the top five crane rental players in Saudi Arabia by 2030.

Order Book and Future Outlook

As of July, Sanghvi Movers' order book stands at ₹767.00 crores, providing a strong foundation for continued growth in the coming quarters. The company expects to execute around ₹500.00 crores worth of orders in the current financial year.

Rishi Sanghvi commented on the company's transformation, stating, "Your Company is transforming itself from a pure-play crane rental Company to a group of companies operating businesses in new verticals and new geographies."

Wind Energy and Diversification

The company's wind EPC business, operated through Sangreen Future Renewables Private Limited, now accounts for nearly 20% of the bottom line. This diversification is part of Sanghvi Movers' strategy to create multiple growth engines and expand its presence in the renewable energy sector.

With India expected to add around 5 gigawatts of new wind energy capacity this year, Sanghvi Movers is well-positioned to capitalize on the growing opportunities in this sector.

As Sanghvi Movers continues to expand its operations both domestically and internationally, the company remains focused on leveraging its expertise in the crane rental business while exploring new avenues for growth in the rapidly evolving infrastructure and renewable energy sectors.