Servotech Power Systems charges into the future with a new EV subsidiary
With a keen awareness of substantial potential within the markets it serves, the company is well-prepared to seize growth opportunities.
Servotech Power Systems Ltd, a prominent player in the electric vehicle (EV) charging sector, has unveiled its latest strategic move – the creation of Servotech EV Infra Pvt. Ltd., a wholly-owned subsidiary poised to dive into the Electric Vehicle Charge Point Operator (CPO) business. The subsidiary is set to engage in a multifaceted approach, encompassing the installation, commissioning, and development of EV charging stations, utilizing electricity from various sources, including solar energy. Notably, Servotech aims to establish a robust network of 5,000 EV Charging Stations nationwide in the coming years.
Servotech Power Systems Ltd. brings over two decades of experience to the table, solidifying its reputation as India’s premier EV charger manufacturer. Having supplied EV chargers to renowned oil marketing companies and EV charging station providers, the company is now expanding its footprint into the EV CPO business. The move underscores Servotech’s commitment to playing a pivotal role in advancing India’s EV infrastructure landscape.
Raman Bhatia, the Founder and Managing Director of Servotech Power Systems Ltd., emphasized the company’s dedication to innovation within the EV charging sector. The establishment of Servotech EV Infra Pvt. Ltd. is viewed as a natural progression in their journey, reiterating their position as a top EV charger manufacturer and significant market player. Bhatia highlighted the substantial responsibilities accompanying their leadership position and expressed optimism about contributing significantly to India’s e-mobility goals.
Servotech Power Systems Ltd.'s financial performance for Q2 FY24, presented during a recent Board of Directors meeting, showcases remarkable growth. The company reported stellar revenue growth of 115.2%, reaching Rs 8,659.09 lakhs in Q2 FY24. This surge is attributed to strong demand for EV chargers amid the increasing adoption of electric vehicles and the growing need for enhanced EV infrastructure.
The company’s solar division has also played a vital role, gaining traction for its products as a result of the escalating focus on sustainable energy. EBITDA exhibited tremendous growth of 148.2%, reaching Rs 597.01 lakhs in Q2 FY24, with a margin expansion of 91 basis points. PAT for Q2 FY24 stood at Rs 312.41 lakhs, indicating a substantial increase from the previous fiscal.
In terms of H1 performance, Servotech Power Systems Ltd. reported a revenue increase of 130.1%, reaching Rs 16,640.44 lakhs in H1 FY24. The company’s financial risk profile is considered comfortable by Crisil, marked by a net worth of Rs 81.2 crore and gearing at 0.5 times as of March 31, 2023. Despite the upcoming capex for a new unit, the financial profile is expected to remain robust.
Servotech Power Systems Ltd attributes its success not only to its focus on delivering cutting-edge, technology-driven solutions in the fields of electric vehicles and solar energy but also to strategic collaborations. Partnerships with the Uttar Pradesh government and esteemed institutions like EMCOR and IIT Roorkee, aligned with the ‘Make in India’ initiative, have been instrumental in reshaping the landscape of both the EV charging infrastructure and solar industry.
As Servotech Power Systems Ltd steps into the future, it remains committed to delivering customer-centric solutions in the realm of sustainable, clean, and green energy. With a keen awareness of substantial potential within the markets it serves, the company is well-prepared to seize growth opportunities. The commitment to advancing the EV Charging Infrastructure and Solar industry positions Servotech Power Systems as a key player in India’s dynamic and competitive energy sector.
In conclusion, Servotech Power Systems Ltd.'s strategic moves in establishing Servotech EV Infra Pvt. Ltd. and its robust financial performance in Q2 FY24 underscore the company’s resilience, innovation, and readiness to shape the future of sustainable energy in India. Investors and market enthusiasts are likely to closely monitor Servotech’s continued expansion and performance in the evolving energy landscape.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.