Rs 700+ crore order book: Electrical equipment company receives order of Rs 59,12,44,356.07 from Jaipur Vidyut Vitran Nigam Ltd

RMC Switchgears Limited has been awarded a significant Letter of Intent (LOI) from Jaipur Vidyut Vitran Nigam Limited (JVVNL), a domestic entity. The contract, valued at approximately Rs 59,12,44,356.07, is for the development of distribution infrastructure in Rajasthan. Specifically, the project involves the segregation of 11 KV mixed feeders at the Tonk Circle of Jaipur Discom. This work falls under the "Revamped Reforms-based and Results-linked, Distribution Sector Scheme (RDSS)" and will be executed on a turnkey basis. The project is expected to be completed within 15 months from the effective date of the contract, which includes the survey and approval phase.

This LOI significantly bolsters RMC Switchgears' order book and is anticipated to positively impact the company's revenue and future growth prospects. The company views this contract as a key development that strengthens its position in the domestic power distribution sector. The nature of the work, focusing on distribution infrastructure, aligns with the company's core business and supports its continued expansion. RMC Switchgears has committed to providing further updates on the project to the Stock Exchange as required by regulations.

About the Company

RMC Switchgears is a key player in electrical infrastructure solutions, specialising in anti-theft and safety-enhancing electrical enclosures, and is a prominent name in the smart meter enclosure market. The company offers manufacturing, installation, and O&M services, and is eyeing the Rs 9 trillion investment in India's transmission sector through its EPC model. RMC is also expanding into renewable energy with solar EPC, green energy projects, and IPP solutions, and plans a 1 GW solar module manufacturing plant. Additionally, it's moving into water management infrastructure with IoT integration, providing custom solutions to DISCOMs, aiming to boost efficiency and support India's power security and sustainable infrastructure goals.

RMC Switchgears Limited announced a consolidated Profit Before Tax (PBT) of Rs 12.44 crore for Q1 FY2025–26, reflecting significant year-on-year growth. This aligns with its strong revenue trajectory, as the company previously reported consolidated revenues of Rs 86.14 crore for Q1, a substantial increase of over 165 per cent from the Rs 34.04 crore achieved in the same period last year.

This growth was driven by robust order execution across its Electrical EPC and Electrical Products segments, leading to higher revenue recognition and stable operating margins. Additionally, strategic investments, including an infusion of Rs 2.6 crore into its wholly-owned subsidiary, RMC Green Energy Private Limited, strengthened solar module manufacturing capacity through backwards integration, aiming to reduce costs and improve margins in the green energy vertical.

 The company has a market cap of over Rs 800 crore with an order book exceeding Rs 700 crore. The shares of the company have an ROE of 31 per cent and an ROCE of 32 per cent. The stock is up by 50 per cent from its 52-week low of Rs 518 per share and has given multibagger returns of over 7,700 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.