Servotech Power Systems Ltd. (NSE: SERVOTECH), a prominent manufacturer of Solar, Electric Vehicle (EV) chargers, power backup, and intelligent power solutions, announced its quarterly financial results for the quarter ending on March 31, 2023, during its Board of Directors meeting on May 7, 2023.
The company reported a remarkable growth of 134.8% in total revenue for Q4 FY23, reaching Rs. 120 Crs, and a year-on-year growth of 93.2% for FY23, reaching Rs. 278.6 Crs. This growth was primarily driven by strong demand for their technology-enabled solutions in the Solar and EV sectors from their targeted customers. EBITDA witnessed a substantial increase of 216.0% in Q4 FY23, amounting to Rs. 9.0 Crs, and a growth of 96.0% for FY23, reaching Rs. 18.9 Crs. Margins also improved by 194 basis points in Q4 FY23 due to increased operational scale, improved efficiencies, and higher-value products. Profit After Tax (PAT) experienced a significant surge of 363.4% in Q4 FY23, amounting to Rs. 6.05 Crs, and a growth of 172.7% for FY23, reaching Rs. 11.1 Crs.
Raman Bhatia, the Managing Director of Servotech Power Systems Ltd., commented on the results, stating that the company witnessed robust growth in the financial year 2023, driven by the launch of innovative tech-enabled solutions in the EV and solar sectors. Their advanced EV charging solutions, known for their speed, reliability, and safety, captured approximately 25.0% of the market share. Additionally, their solar solutions, characterized by ease of installation, cost-effectiveness, and reliability, gained traction in the market due to rapid product acceptance from targeted customers.
Bhatia expressed pride in their contribution to the EV Charging Infrastructure and Solar industry and reiterated their commitment to further innovation and improvement. Their solar and EV charging solutions have generated significant value for clients such as IOCL, BPCL, HPCL, GAIL, and others. Looking ahead, the company remains highly optimistic about the potential of the markets they serve and confident in their ability to capitalize on growth opportunities. Their strong order pipeline is evidence of this. To expand their market share, they have outlined a strategic plan that includes partnerships with key industry players, talent pool expansion, increased focus on innovation, and enhancing their distribution network. Through the execution of these initiatives, they aim to solidify their position as a leading player in the industry.
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