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Power Mech Projects Secures ₹186 Crore Order from Jaiprakash Power Ventures

Updated on: Dec 27, 2024, 4:32 PM IST
Power Mech Projects Secures ₹186 Crore Order from Jaiprakash Power Ventures
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Shares of Power Mech Projects are expected to remain in focus after the company announced securing a significant order worth ₹186 crore from Jaiprakash Power Ventures.

The contract involves providing Field Operation and Maintenance (O&M) services for the 2 x 660 MW Jaypee Nigrie Super Thermal Power Plant located in Nigrie, Madhya Pradesh.

Contract Details

The O&M services will span five years, starting from January 1, 2025, and concluding on December 31, 2029. The contract value for the first year is set at ₹3.10 crore per month.

Following the initial year, a monthly price escalation based on the Wholesale Price Index (WPI) will be applied for the remaining 48 months, ensuring adjustments for inflation and cost variations from January 1, 2026, to December 31, 2029.

Shareholding Details And Market Performance 

As of October 30, 2024, promoters held a 58.29% stake in Power Mech Projects shares, while Foreign Institutional Investors (FIIs) owned 4.94%, and Domestic Institutional Investors (DIIs) held 23.11%.

On December 27, 2024, Power Mech Projects share price jumped by 1.56%, reaching ₹2,556.20 at 9:28 AM (IST). According to BSE data, the stock recorded a total traded volume of 1.374 shares, resulting in a turnover of ₹35.29 crore.

At the current price, Power Mech Projects shares are trading at a price-to-earnings (P/E) ratio of 15.38x, based on its trailing 12-month earnings per share (EPS) of ₹166.59, and a price-to-book (P/B) ratio of 2.10, according to exchange data. The stock has a beta value of 1.42, indicating its volatility to the broader market.

Power Mech Projects Q2 FY25 Results

Power Mech Projects posted a significant increase in consolidated net profit, reaching ₹69.51 crore in Q2 FY25, compared to ₹51.26 crore in the same quarter last year. Revenue from operations also rose to ₹1,035.49 crore, up from ₹932.49 crore in Q2 FY24. Profit before tax saw a year-on-year (YoY) growth, climbing to ₹100.90 crore in Q2 FY25.

Total expenses for the quarter stood at ₹944.05 crore, reflecting a 10.51% rise from ₹854.22 crore recorded in Q2 FY24. Key components of the expenses included ₹170.78 crore for the cost of materials consumed, ₹568.49 crore for contract execution expenses, and ₹154.41 crore for employee benefit expenses.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Dec 27, 2024, 11:21 AM IST

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