Genus Power stock hits 5% upper circuit after arm bag orders worth ₹3608 crore

Shares of Genus Power Infrastructures, one of the largest players in India’s electricity metering solutions industry, were locked in at a 5% upper circuit limit in today's early morning trade, reaching a new all-time high of ₹428 apiece after the company announced that its wholly owned subsidiary secured significant orders.

In an exchange filing on Tuesday, the company said that its subsidiary has received three Letter of Awards (LOA) worth a total of ₹3,608.52 crore (net of taxes) for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs), including the design of the Advanced Metering Infrastructure (AMI) system with supply, installation, and commissioning with an FMS of about 4.26 million Smart Prepaid Meters, system meters including DT Meters, and corresponding energy accounting on a DBFOOT basis.

With the latest order win, the company's total order book has jumped to ₹28,000 crore, which provides clear revenue visibility.

Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, "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. With these recent orders, our total order book, including all SPVs and the GIC Platform, stands at about ₹28,000 crore (net of taxes)."

"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," Jitendra Kumar added.

This marks the second major order win for the company in less than a week. On August 19, the subsidiary secured orders worth ₹2,925 crore for similar AMISP roles, including the design of AMI and the supply, installation, and commissioning of around 3.8 million smart prepaid meters, according to a press release.

Earnings

Genus Power Infrastructures delivered a strong performance in the June quarter, with revenue rising to ₹414.2 crore, a 59% increase compared to ₹261.1 crore in Q1 FY24. This growth was largely driven by robust order execution in the smart metering segment.

However, the company experienced a slight sequential dip in revenue due to typical seasonal variations and operational delays caused by the general elections.

EBITDA for the quarter stood at ₹63.2 crore, a significant 121% increase from ₹28.6 crore in Q1 FY24, with the EBITDA margin improving by 431 basis points year-over-year to 15.3%. The company expects to maintain these margins moving forward, supported by efforts to optimize operational efficiencies and manage costs effectively.

Despite the rise in employee and other expenses due to ongoing expansion and system improvements, the company saw a 120% increase in profit after tax, reaching ₹42.4 crore compared to ₹19.3 crore in the same quarter last year.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.