Gensol Engineering shares dive 17% after Q3 earnings disappoints investors

Gensol Engg shares have nearly halved in value in the last one year.

Shares of Gensol Engineering plummeted over 17 percent and hit a 52-week low of Rs 580.05 on February 12 after the company's Q3 number disappointed investors. Gensol's quarterly earnings highlighted its weak bottomline and operational performance.

Gensol Engineering reported a 6.1 percent decline in net profit for Q3, coming in at Rs 16.9 crore compared to Rs 18 crore in the same period last year. The drag on the bottomline was due to weakened operational performance as EBITDA margins contracted to 18.1 percent in Q3, down from 19.6 percent reported in the year ago period.

However, revenue saw a strong 30.5 percent growth, rising to Rs 344.5 crore from Rs 264 crore year-on-year.

At 2.19 pm, shares of Gensol Engineering were trading at Rs 601.10 on the NSE, though off its day's lows but still deep in the red. The fall in the counter was further intensified by an influx of heavy trading volumes. As much as 10 lakh shares of the company changed hands on the exchanges, a meteoric rise from the one-month daily traded average of just one lakh shares.

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During the quarter, Gensol Engineering secured multiple major engineering-procurement-construction (EPC) contracts, including a significant contract from a renowned public sector undertaking for the development of a 275 MW Solar PV Project in Gujarat. The total bid value for this project is around Rs 1,061.97 crore and includes three years of operations and maintenance (O&M) services.

Additionally, Gensol Engineering secured a contract with NTPC Renewable Energy for the development of a 225 MW-AC (276 MWDC) solar PV system at GSECL Solar Park, Gujarat. This project is valued at Rs 897.5 crore.

Furthermore, the company recently won another EPC contract worth Rs 968 crore for a 245 MW solar PV project in Gujarat. This contract also includes three years of comprehensive O&M services.