Power Mech shares rally up to 6% on ₹114 crore order win from Coastal Energen

The stock rose by nearly 6% to hit an intraday high of ₹6,000 per share on the NSE in morning deals. Shares of the Hyderabad-based company were trading 1.92% higher at ₹5,778 apiece at 11:45 am.

The integrated ETC (erection, testing and commissioning) services provider for boilers, turbines, generators, and balance of plant (BOP) has bagged a new order for the maintenance and operation of a thermal plant for 12 months. The company has received the order from Coastal Energen Private Limited.

The order is for the operation and maintenance of the 1,200 MW coal-based thermal power plant, Mutiara Thermal Power Plant, owned by Coastal Energen Pvt Ltd, for one year starting October 1, 2024.

In a separate filing, Power Mech also informed the stock exchanges that its board will meet on August 22 to consider and approve an issue of bonus shares to shareholders.

“The meeting of the Board of Directors of the Company will be held on Thursday, the 22nd day of August, 2024, inter alia, to consider the proposal for issue of bonus shares to the equity shareholders of the company,” the company said.

The company earlier this month won an international order worth ₹110.57 crore. The order pertains to the operation and maintenance of a 400 MW captive power plant and utilities of the Petroleum Oil Refinery at Dangote, Nigeria.

The company bagged the project from Dangote Petroleum Refinery and Petrochemical FZE for two years.

Power Mech Projects reported revenue from operations of ₹1,007 crore for the first quarter of FY 2024-25 against ₹865 crore in the year-ago period. Its operating profit increased to ₹88.14 crore in the first quarter of FY25 against ₹74.62 crore in the year-ago period. The company’s net profit rose to ₹61.72 crore in the April-June quarter from ₹50.96 crore in the same period a year ago.