Gensol Engineering Q3 FY25 : Gensol Engineering Ltd. reported a mixed financial performance for the third quarter of FY25, with a 6.1% year-on-year decline in net profit to ₹16.9 crore. The company’s operational challenges, including a contraction in EBITDA margins, triggered a sharp 13.58% intraday stock drop on February 12, 2024. However, robust revenue growth and the acquisition of ₹2,927 crore in solar EPC contracts signal long-term potential.
Gensol Engineering’s stock took a significant hit on February 12, witnessing a steep decline of up to 13.58% during intraday trading. The stock eventually closed at Rs 601.65, down 14.50% on the Bombay Stock Exchange (BSE), even touching its 52-week low of Rs 582.60. This sharp fall comes after the company reported weaker-than-expected financial results for the third quarter of FY25, prompting heavy selling pressure from investors. With this decline, the company’s market capitalization has shrunk to Rs 2,294.40 crore, a stark contrast to its 52-week high of Rs 1,377.10.
Major EPC Contracts Bagged
Even amid weaker operational performance, Gensol Engineering secured several high-value engineering, procurement, and construction (EPC) contracts, reinforcing its growth trajectory in the renewable energy sector:
275 MW Solar PV Project in Gujarat: The company won a prestigious contract from a reputed public sector company to develop a 275 MW solar PV project. The total bid amount for this project stands at Rs 1,061.97 crore, which includes three years of Operations & Maintenance (O&M) services.
225 MW-AC Solar PV System for NTPC Renewable Energy: Gensol Engineering secured another major deal with NTPC Renewable Energy for the development of a 225 MW-AC (276 MWDC) solar PV system at GSECL Solar Park, Gujarat. The project is valued at Rs 897.5 crore.
245 MW Solar PV Project in Gujarat: Adding to its robust order book, the company recently bagged an EPC contract worth Rs 968 crore for another 245 MW solar PV project in Gujarat, which also includes three years of comprehensive O&M services.
Key Financial Highlights (Q3 FY25)
Revenue Growth:
Revenue surged 30.5% YoY to ₹344.5 crore (vs. ₹264 crore in Q3 FY24).
Driven by strong execution in solar EPC projects.
Profit Decline:
Net profit fell to ₹16.9 crore (vs. ₹18 crore YoY) due to operational inefficiencies.
EBITDA margin dropped to 18.1% (from 19.6% YoY).
Stock Reaction:
Shares plunged 14.5% to close at ₹601.65 on BSE, hitting a 52-week low of ₹582.60.
Market cap eroded to ₹2,294 crore (down from ₹2,700 crore+ earlier).
Why Did Gensol Engineering’s Stock Crash?
Weak Margins: Rising costs and project delays hurt profitability despite revenue growth.
Investor Sentiment: Concerns over near-term earnings sustainability amid margin pressures.
Technical Trigger: The stock broke key support levels, accelerating sell-offs.
Disclaimer: The information provided here is for informational purposes only. Investing in the stock market carries inherent risks. It is advisable to seek expert financial advice before making any investment decisions. Bindaasbola.com does not provide investment recommendations or financial advice.
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