RMC Switchgears gains on securing Rs 59-cr order from Jaipur Discom

RMC Switchgears rallied 3.15% to Rs 759 after the company announced that it has received a Letter of Intent (LOI) worth Rs 59.12 crore from Jaipur Vidyut Vitran Nigam (JVVNL).

The order pertains to the development of distribution infrastructure for the segregation of 11 KV mixed feeders at the Tonk Circle of Jaipur Discom in Rajasthan. The project will be executed on a turnkey basis under the Revamped Reforms-based and Results-Linked Distribution Sector Scheme (RDSS).

According to the company's regulatory filing, the project is to be completed within 15 months from the effective date of the contract, including survey and approvals. RMC Switchgears stated that the receipt of this LOI will further strengthen its order book and is expected to positively impact its revenue and growth prospects.

The company also clarified that neither its promoters nor promoter group entities have any interest in the awarding authority, and the transaction does not qualify as a related party transaction under applicable regulations.

RMC Switchgears is engaged in providing electrical infrastructure solutions and continues to build momentum in the power distribution sector through strategic government-backed projects.

RMC Switchgears is primarily engaged in the business of switchgear engineering and ECI contracts for the power distribution/transmission sector.

For FY25, the company has registered a consolidated net profit of Rs 31.45 crore (up 111.2% YoY) and net sales of Rs 318.16 crore (up 84.3% YoY).

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