Power Mech Secures ₹579 Crore BHEL Contract for Koderma Power Project

24 Mar 2025 , 04:14 PM

Power Mech Projects Limited shares gained more than6% on Monday, 24 March after the company announced a significant contract win with Bharat Heavy Electricals Limited (BHEL). The company has received a ₹579 crore (excluding GST) order for civil, structural and architectural works at the 2x800MW DVC Koderma Thermal Power Station (KTPS) Phase-II in Jharkhand.

Infrastructure will be built at a multitude of levels as part of the project, including:

• Excavation, levelling and grading of the power block area
• Establishment of foundations for critical structures.
• Buildout of service buildings to facilitate operations.
• Enhanced ventilation systems to increase airflow.
• Installation of fire safety measures
• Construction of fencing and other protective structures

The period of execution for the project is 32 months from the date of Letter of Award (LOA). Power Mech Projects Profit Jumped 128% YoY to ₹ 57 Crore, Revenue Up 76% YoY to ₹ 1,099 Crore. Its net profit increased by 33.3% year on year to ₹82 crore, versus ₹61.5 crore for the year-ago quarter.

Revenues increased by 20.8% yoy to ₹1,338 crore vs. ₹1,107.5 crore in Q3 FY23 which indicates firm business traction. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 12.8% on-year to ₹150.9 crore from ₹133.8 crore. And even with the firm raising revenue dollars, they did see a decline in EBITDA margin, from 12.1% in Q3 FY23 to 11.3% in Q3 FY24.

They offer service at power and infrastructure sector which are the following:

• Power Plants Erection, Testing and Commissioning (ETC).
• Management and Maintenance (O&M) for industrial and energy infrastructure
• Power Segment Project Civil works and Infrastructure Projects

Power business remains a beneficiary of the increasing demand in the power infrastructure space, which has undergone signification development, resulting in the firm winning big ticket orders, further adding to its business expansion. The BHEL contract victory strengthens Power Mech’s leading position in the sector and enhances its experience in delivering challenging power and infrastructure projects.