Gensol Engineering slips 10% despite order win of Rs 450-cr revenue potential

Shares of Gensol Engineering Limited slumped 10 percent to Rs 911 in the afternoon on March 11 even as the company bagged an order for a 70 MW / 140 MWh out of 250 MW / 500 MWh standalone Battery Energy Storage Systems (BESS) project.

This project is expected to contribute Rs 450 crore to Gensol’s revenue throughout the contract. However, the specific timeframe of the contract has not been disclosed by the company.

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The project will be developed by Gensol under a Tariff-Based
Global Competitive Bidding model to provide energy storage capacity to Gujarat Urja Vikas Nigam Limited (GUVNL) in Gujarat on a demand basis.

“Being one of the first major projects of standalone BESS in the country, the prospects for BESS will grow significantly on the back of strong policy support from the government,” Gensol said.

During an interaction with CNBC-TV18 in February, Anmol Singh Jaggi of Gensol Engineering stated that the company revised its revenue guidance for the financial year 2024 to slightly over Rs 1,000 crore, down from the previous guidance of Rs 1,500 crore.

“Gensol will provide state-of-the-art energy storage solutions integrated with advanced energy management systems while meeting stringent availability and efficiency performance metrics,” the company said in a regulatory filing on March 11.

The company specialises in engineering, procurement, and construction (EPC) services, focusing on the solar power sector.

At 1:30 pm, the stock was trading at Rs 919, down 9.2 percent from the previous close on the NSE. Since the start of the month, the stock has tanked over 20 percent on the bourses.

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