Mindteck (India) gain 9% after winning smart grid project

Mindteck (India), a global technology company, rose above nine per cent in intra-day after winning a smart grid project for BESCOM’s Chandrapura sub-division in synergy with IIT BHU.

Mindteck will be demonstrating the success of transitioning to the smart grid over the traditional grids. The company’s primary focus will be R&D integration, resulting in peak load management, demand response and local intelligent power control with grid power variation for transformers. The project entails the installation of Automatic Metering Infrastructure (AIM), single phase and three-phase; smart metres along with LT-CT and HT-CT operated-metres; Data Concentrator; a Metre Data Acquisition System (MDAS); and Metre Data Management (MDM) for real-time data acquisition and retrieval.

For nine months ended December 31, 2015, the company reported 49.6 per cent growth in consolidated net profit of Rs 23.80 crore, while revenue increased marginally by 3.9 per cent quoting Rs 332.3 crore. EBITDA reported de-growth of 29 per cent at Rs 1737.4 crore along with EBITDA margin, which contracted by 266 bps at 10.14 per cent. Profit jumped mainly due to current year tax expenses, which consists of Rs 11.39 crore, representing reversal of overseas tax provision for earlier years.

Around 74 per cent revenue came from USA, 7 per cent from Europe region, 6 per cent from IMEA (India, Middle East and Africa) and remaining 14 per cent from others. The company is expected to be a unique smart control demonstration platform for utilities and it will help pave the way for future collaborative work – both nationally and internationally.

On Valuation front, stock is trading at 9.4 times, Price to Earnings ratio on TTM basis, with earning of Rs 10.14 per share.

Today, it is closed at Rs 103.45, up by 7.40 points or 7.70 per cent from its previous closing of Rs 96.05 on the BSE.