Stock Soars Subsidiary Secures Orders Worth ₹3,608 Crore
In a significant boost for Genus Power Infrastructures, one of India’s leading electricity metering solution providers, the company witnessed its stock price surge, hitting a 5% upper circuit. This jump followed the announcement that its wholly-owned subsidiary had bagged orders worth a whopping ₹3,608.52 crore. This latest achievement has marked a second major win for the company within just a week.
Breaking Down the Big Win
The news broke early Tuesday when Genus Power Infrastructures disclosed in an exchange filing that its subsidiary received three Letters of Award (LOA) for an impressive total of ₹3,608.52 crore. These orders are for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs). But what exactly does this mean?
Simply put, AMISPs are responsible for designing Advanced Metering Infrastructure (AMI) systems, which include the supply, installation, and commissioning of smart prepaid meters and system meters such as DT Meters. The scope of work also involves corresponding energy accounting, all on a DBFOOT (Design, Build, Finance, Own, Operate, and Transfer) basis.
With these new orders in the bag, Genus Power’s total order book has now ballooned to an astounding ₹28,000 crore. This not only adds to the company’s revenue visibility but also solidifies its position in the market.
What the Management Has to Say
Jitendra Kumar Agarwal, the Joint Managing Director of Genus Power Infrastructures, expressed his delight over the company’s latest success. “Our company has successfully secured three new orders worth ₹3,608.52 crore (net of taxes). This ongoing success highlights the trust our clients place in our expertise and the exceptional quality of our offerings,” he said.
Agarwal also emphasized the significance of these orders for the company’s future growth. “These concessions are for 8 to 10 years, providing clear visibility into the company’s robust future growth. As we celebrate this achievement, we remain dedicated to upholding the highest standards of quality, innovation, and customer satisfaction,” he added.
A Week of Victories
This isn’t the first time in recent days that Genus Power has made headlines for securing big orders. Just on August 19, the company’s subsidiary clinched orders worth ₹2,925 crore for similar AMISP roles, which included the design, supply, installation, and commissioning of approximately 3.8 million smart prepaid meters. These back-to-back wins showcase the company’s stronghold in the smart metering segment, a critical component of India’s ongoing power sector reforms.
Financial Performance: A Closer Look
The June quarter results for Genus Power Infrastructures have painted a rosy picture for the company. Revenue for the quarter shot up to ₹414.2 crore, marking a remarkable 59% increase from ₹261.1 crore in Q1 FY24. This surge in revenue was largely driven by robust order execution in the smart metering segment—a segment that continues to be the company’s bread and butter.
However, it’s not all smooth sailing.
The company did experience a slight dip in revenue on a sequential basis.
This drop was attributed to seasonal variations and operational delays brought about by the general elections. Despite these challenges, Genus Power managed to deliver strong financials.
The company’s EBITDA (Earnings Before Interest,
Taxes, Depreciation, and Amortization) for the quarter stood at ₹63.2 crore, representing a significant 121% increase from ₹28.6 crore in Q1 FY24. The EBITDA margin also improved by 431 basis points year-over-year,
reaching 15.3%. Looking ahead, the company expects to maintain these margins, thanks to ongoing efforts to optimize operational efficiencies and manage costs effectively.
Profitability on the Rise
Even with rising employee and other expenses due to the company’s expansion and system improvements, Genus Power saw a 120% increase in profit after tax.
The profit for the quarter reached ₹42.4 crore, up from ₹19.3 crore in the same quarter last year. This leap in profitability underscores the company’s resilience and ability to navigate through challenges while continuing to grow.
The Road Ahead
The recent order wins are a testament to Genus Power’s strategic focus on the smart metering segment.
The company’s ability to secure large-scale orders in a highly competitive market speaks volumes about its technical expertise and industry reputation. With a strong order book of ₹28,000 crore,
the company is well-positioned to capitalize on the growing demand for smart metering solutions in India.
Moreover, these long-term contracts, ranging from 8 to 10 years, provide the company with clear revenue visibility and the assurance of sustained growth.
The power sector in India is undergoing significant transformation, with a strong push towards modernization and digitalization. In this landscape,
Genus Power is poised to play a crucial role, thanks to its cutting-edge technology and robust execution capabilities.
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Conclusion
Genus Power Infrastructures is on an upward trajectory, bolstered by its recent order wins and solid financial performance. The company’s focus on innovation, quality,
and customer satisfaction has enabled it to maintain a strong foothold in the market.
With a burgeoning order book and a clear path to growth, Genus Power is set to continue its success story in the years to come.
