Gensol Engineering stock jumps 5% on bagging solar PV project worth Rs 780 crore

Gensol Engineering recently posted a 29 percent increase in its net profit after tax at Rs 22.93 crore in the July-September quarter compared to the previous year's profit of Rs 17.71 crore.

Shares of Gensol Engineering gained up to 5 percent amid a weak market as the company bagged a solar PV project worth Rs 780 crore from a leading public utility in Maharashtra.

It is a large turnkey engineering, procurement and construction (EPC) order that involves the development of a 150 MWac ground-mounted solar PV power plant. The order is to be executed over 15 months.

Gensol Engineering will be involved in every part of the project's lifecycle —from land acquisition, to the design, engineering, procurement and logsitics. It will also manufacture, supply construct, inspect, install, test and commission the plant and develop the associated power evacuation infrastructure to the STU substation.

The contract also includes three years of operation and maintenance for the project, inclusive of maintenance of the plant's switchyard and its transmission infrastructure.

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"This significant project is a testament to Gensol's growing expertise as a provider of comprehensive, end-to-end solutions," said Shilpa Urhekar, CEO, Solar EPC (India), Gensol Engineering.

Recently, Gensol posted a 29 percent increase in its net profit after tax at Rs 22.93 crore in the July-September quarter compared to the previous year's profit of Rs 17.71 crore. Its total income increased to Rs 346.82 crore in Q2 from Rs 304.87 crore in the year-ago period.

Last month, the company partnered with Matrix Gas & Renewables Ltd to develop India’s first and largest green hydrogen-powered steel facility. This initiative, a part of the National Green Hydrogen Mission, aims to revolutionise sustainable steel production by using 100% green hydrogen instead of conventional fossil fuels, it said in a stock exchange filing.

This project is one of three pilot programs approved by MECON in partnership with the Ministry of Steel (MoS) and the Ministry of New and Renewable Energy (MNRE). Designed with a capacity of 50 tonnes per day (TPD), the pilot plant aims to set a precedent for similar facilities across India.

At 1:21 pm, Gensol Engineering shares were trading 2 percent higher at Rs 835.90 on the National Stock Exchange (NSE). The stock has fallen around 2 percent so far this year, underperforming Nifty's returns of 10 percent.

In the past 12 months, the counter has gained 5 percent compared to Nifty's rise of 23 percent during this period.

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