Engineering and Consulting player Gensol Engineering returned to black with an eight-fold surge in net profit in the quarter ended December 2023. According to an exchange filing, the company posted a consolidated net income of INR 12.31 crore compared to a net loss of INR 1.9 crore in the same quarter of previous Financial Year (FY).
Revenues during the quarter also registered a strong uptick to INR 227.12 crore, marking a jump of 335% from INR 52.22 crore in the same period a year ago.
The jump in revenues was driven by the increase in solar engineering, procurement, and construction (EPC) business which took at the segment to INR 170 crore in the latest quarter, up from just INR 35 crore in the corresponding period last year. Meanwhile, newly-acquired Scorpius Trackers and EV leasing businesses also made meaningful contributions.
The Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 312% year-on-year to INR 70 crore from INR 17 crore. Gensol has an order book valued at over INR 1,000 crore as of December 2023.
Nine-Month Results
Strong performance in the third quarter also boosted the company’s nine-month results. Gensol posted a net profit of INR 33.7 crore in the first nine months of FY 2024, marking an increase of 111% from INR 16 crore. Meanwhile, Gensol’s total revenue also registered a growth of 147% to INR 584 crore in the nine months of FY 2024.
Important Business Developments During Quarter
The company has gained approval from the Indian Renewable Energy Development Agency (IREDA) for an INR 513 crore loan for the EV Lease business, which will finance 3,800 electric vehicles. Sarda Energy and Minerals, a steel and ferro alloys company, has also awarded Gensol Engineering an EPC contract for a 33 MW captive solar power project to meet electricity demand at its Kharora factory in Chhattisgarh. Previously, the company received an EPC contract from NHPC to establish a pilot project for a green hydrogen-powered mobility station in Kargil, Ladakh.
It has also established an electric vehicle (EV) manufacturing facility in Pune to develop battery-based three-wheelers and four-wheelers.
