Order win helps HBL Power Systems surge 16 per cent

The shares of HBL Power Systems were trading higher by nearly 14 per cent on Wednesday after the company informed that it has secured work orders from different customers.

The company in its press release stated that it has bagged orders worth Rs 180 crore for which it will work in different industries. Indian Navy has placed an order for seven submarine propulsion batteries with a value of Rs 85 crore. The product will be delivered over the next 18 months.

In addition to this, the company will work towards the supply of train collision avoidance systems worth Rs 70 crore to South Central Railway, which is executable over a period of next 18 months. Besides, HBL has also received export orders of over Rs 26 crore for the supply of lithium thermal batteries.

The new orders would come handy for the company as it has already seen a decline in revenue growth in the recent quarters. For recently concluded third quarter, its revenue dropped nearly 18 per cent on YoY basis. The declining trend has been consistent for end of FY18. For previous fiscal year ended March 2019, the company reported a drop of 21 per cent and further, due to the steady quarterly drop in sales, FY20E numbers may be much encouraging.

At 2.45 pm on Wednesday, the stock traded at Rs 15.75, higher by 16 per cent on BSE.