Servotech power systems : An EV charger giant in making

Servotech Power systems Ltd is a Delhi based company. The company’s major product portfolio includes Solar panels, solar inverters, energy storage systems, solar pump controller, AC & DC EV chargers. Servotech power share price is INR 183.6 (08/11/2024). Servotech power systems is listed on the NSE.

Recent updates of servotech power systems

1. Issue of 58,50,000 warrants at a price of Rs. 167.40/- per warrant in cash, for aggregate consideration up to ~ Rs. 98 crores. Warrants are issues to the promoter of the company. 25% of the amount is received by the company and the remaining 75% of the amount will be received at the time of the conversion of the warrants  into equity shares. The time limit of  conversion is up to 18 months from the issue date. Issue date is 23 September, 2024. This is a big positive for the company as promoters showing confidence in the business.
2. The company has secured to install additional 9 EV chargers to the Nashik Municipal Corporation. Earlier, Servotech power systems received an order to supply 20 EV chargers to the NMC.
3. Servotech collaborates with UK-based company Ensmart Power to Expand EV Charger Business in the UK and Beyond.
4. The company launched solar on-grid inverters, solar hybrid inverters, solar micro inverters, battery energy storage systems, and solar Pump controllers.

Result review (Q2FY25)

Servotech power systems posted impressive Q2FY25 results. Here are some key insights you need to know:

1. 260% increase in profit (YOY) to 11.24 crores
2. 131% increase in revenue (YOY) to 200 crores
3. EBITDA up by 223% (YOY) to 192.93 crores

Other updated in the Q2FY25 of Servotech power systems

1. 51% growth in the dealer and distribution network.
2. Developed Type 6/ type 7 EV chargers for electric 2-wheelers and 3 wheelers for both personal and commercial applications.
3. Conducted successful trials and testing of a 22 kW dual-output EV charger designed for the international market, along with a below 1 kW EV charger specifically tailored for two-wheelers.
4. Enrolled with 62 DISCOMs under PM Surya Ghar Muft Bijli Yojana.
5. Secured Order to Deploy EV Charging Stations for ANERT and BESCOM and Solar Energy Storage and Grid Connected Systems from UPNEDA & RDD.
6. The company to change the name of the company from ‘Servotech Power Systems Limited’ to ‘Servotech Renewable Power System Limited’.
7. The company to change the registered office of the Company from one state to another i.e. Delhi to Haryana.

Other updates

Servotech’s major clients include HPCL, BPCL, IOCL, Adani gas e-mobility, Nayara energy, Tata power, Tata motors, Electra EV and many more. The company’s current annual capacity is 60,000 AC chargers & 12,000 DC fast chargers annually. The company is expanding its product portfolio rapidly. The revenue breakup would be 60:40 for EV chargers and Solar products respectively. The promoters of the company hold 59.34% shares as on 30th september 2024 and there is no pledge of shares by the promoters. The future of the servotech power systems limited looks impressive with the said portfolio as the EV industry is going to grow rapidly. Currently, the company is commanding impressive 40-45% of the total market share in EV chargers manufacturing. 

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