Gensol Engineering Share Price See Partial Recovery with Amid Ongoing Challenges

Market Performance

On March 7, 2025, Gensol Engineering share price experienced significant fluctuations. The stock declined by 8.2%, reaching an all-time low of ₹307 per share during the early session. However, it rebounded by 15% from this low, trading at ₹352.95 per share before stabilizing at ₹324.75 per share, down 3% as of 10:30 a.m. Despite this recovery, the stock remains 32% lower over the past four sessions.

Main News

Gensol Engineering recently announced the resignation of its Chief Financial Officer (CFO) and Key Managerial Personnel (KMP), Ankit Jain, effective immediately. This development occurred amidst the company's ongoing challenges, including delays in servicing term loan obligations and allegations related to debt servicing documentation. These factors have contributed to recent credit rating downgrades by ICRA and CARE.

In response, Gensol Engineering has appointed Jabirmahendi Mohammedraza Aga as the new CFO and KMP, effective March 7, 2025.

Company Details

Debt Situation

As of recent disclosures, the company reported a total debt of ₹1,146 crore, with reserves of ₹589 crore, resulting in a debt-equity ratio of 1.95.

Financial Performance (First Nine Months of the Current Fiscal Year)

• Revenue: ₹1,056 crore (42% growth)
• EBITDA: ₹246 crore (89% increase)
• Net Profit: ₹67 crore (34% rise)

Debt Reduction Initiatives

Gensol Engineering has undertaken measures to reduce its debt burden. These efforts include:

• Sale of 2,997 electric vehicles, generating ₹315 crore
• Divestment of a wholly owned subsidiary, raising ₹350 crore

Through these transactions, the company aims to decrease its debt by ₹665 crore, lowering the debt-equity ratio to 0.8. Additionally, the company reported a ₹230 crore reduction in debt obligations within the current financial year.

Order Book

The company highlighted a strong order book exceeding ₹7,000 crore.

Corporate Governance Actions

Gensol Engineering responded to recent allegations, announcing the formation of a committee for a thorough review. The company emphasized accountability, transparency, and adherence to sustainable business practices.

Summary

Gensol Engineering has faced significant market volatility, marked by a notable decline in share price over recent sessions. The resignation of a key financial officer, ongoing debt servicing issues, and credit rating downgrades have contributed to recent challenges. In response, the company has implemented asset divestment strategies to manage debt levels and has reaffirmed its commitment to corporate governance practices. Despite these efforts, the company's share performance remains under pressure as it navigates through these developments.