Genus Power Infrastructures announced Q3FY23 results: Q3FY23: Revenue stood at Rs 200.4 crore, up by 2.3%, as against Q3FY22 revenue of Rs 195.9 crore. Continued low availability of semiconductors and other critical electronic components hampered revenue expansion and lowered capacity utilization. We anticipate a sharp revenue rebound in FY24 on account of robust order book and healthy order inflow, and on the expectation that normalcy in the supply chain will be restored EBITDA stood at Rs 20.5 crore, as against Rs 20.9 crore of Q3FY22. Operating margins have remained subdued on account of higher raw material costs and lower capacity utilization Profit After Tax was up by 41.6% at Rs 11.6 crore for Q3FY23 against Rs 8.2 crore in Q3FY22. Commenting on the performance Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, “We have recently received a huge order inflow for installation of 29.49 lakh smart prepaid meters, which will give lot of visibility to our revenues for coming years. It also signals a strong start to order inflow for our industry. We anticipate a sharp revenue rebound in coming quarters on account of robust orderbook and healthy order inflow, and restoration of normalcy in the supply chain. In the current quarter, the supply chain issues for semiconductors continued to persist along with that of other essential electronic components. Inadequate capacity utilization led to subdued top-line growth and also had adverse impact on our operating margins. The implementation of the Revamped Distribution Sector Scheme (RDSS) will result in a radical transformation of the Indian metering industry, resulting in a projected multi-fold increase in annual industry size. This will also result in a shift in the Indian metering industry from conventional to smart meters, allowing for higher operating margins. The Indian metering industry will see strong order inflows, healthy topline growth, higher operating margins, and an improved working capital cycle beginning in FY24. Allocation to the Revamped Distribution Sector Scheme (RDSS) was doubled to Rs 12,000 crore in the 2023-24 Union Budget. The budget also ushered in a key measure for the financial health of states' distribution utilities by tying 0.5% of their deficit to power sector reforms, as an extension from last year. Continued fiscal support is an added incentive for the states to undertake power distribution reforms. These reforms will yield in the upgradation of the DISCOM network and metering, thereby curbing AT&C; losses. In comparison to conventional meters, the cost of smart meters can be anywhere from three to four times higher. In addition to that, they come packaged with a broad range of after-sales services. As a result of this, we anticipate a significant increase in revenue from smart meters, which typically have higher operating margins than traditional meters. All of this will, in the years to come, have the effect of reshaping the economic dynamics of the industry of smart meters in India. We build everything in-house, from conceptualization, design, tools room, molding machines, assembly lines, and test labs, so we can meet the highest industry standards. This is our most valuable USP because it allows us to customize products to meet our clients' metering needs in a timely and cost-effective manner. We have developed our service capabilities concurrently with our technological capabilities, as we offer end-to-end service solutions such as meter installation, meter maintenance, data analytics, MDM solutions, etc. This gives us a significant competitive advantage over our competitors. We have been in the electricity metering business for over two decades and currently have the largest market share in India, accounting for approximately 27%. We hope to re-establish our leadership position in the smart metering industry by building on our inherent strengths. As the largest player in the Indian metering sector, we are well positioned to benefit from the industry's multi-fold expansion.” Result PDF
Genus Power Infrastructures announced Q2FY23 results: Q2FY23: Revenue stood at Rs 218.6 crore, up by 23%, as against Q2FY22 revenue of Rs 177.8 crore. Continued low availability of semiconductors and other critical electronic components hampered revenue expansion and lowered capacity utilization. We anticipate a sharp revenue rebound in H2FY23 on account of robust orderbook and healthy order inflow, and normalcy in supply chain to be restored within the next three months. Post that, we expect to carry forward that momentum in FY24 EBITDA stood at Rs 16.9 crore, an increase of 16.1%, as against Rs 14.5 crore of Q2FY22. Operating margins were impacted by rising raw material costs and lower capacity utilization Profit After Tax was up by 56% at Rs 10.2 crore for Q2FY23 against Rs 6.6 crore in Q2FY22 Order book: In April 2022, we received a letter of award (LOA) for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including design of AMI system with supply, installation and commissioning of about 10 Lakhs Smart Prepaid Meters, DT Meter level energy accounting and FMS of these smart meters from a state utility. The total order, worth Rs 828.57 crore (net of tax), is the single largest order finalized by any state utility in India for AMISP As on 30th September 2022, our order book stood at Rs 1,761 crore (net of tax) Commenting on the performance Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, “In the current quarter we continued to face supply chain issues for semiconductors and other essential electronic components, as also disclosed in our previous earnings call. Inadequate capacity utilization affected our top-line growth and also had adverse impact on our operating margins. However, our operations are expected to pick up significantly in H2FY23. We anticipate that the implementation of the Revamped Distribution Sector Scheme (RDSS) will result in a radical transformation of the Indian metering industry, resulting in a projected multi-fold increase in annual industry size. This will also result in a shift in the Indian metering industry from conventional to smart metres, allowing for higher operating margins. System integrators (also known as Advanced Metering Infrastructure Service Providers, or simply AMISPs) will be responsible for all capital expenditures in the new TOTEX (CAPEX + OPEX) model under the Design Build Finance Own Operate and Transfer (DBFOOT) arrangement, relieving SEBs of any financial burden. The Indian metering industry will see strong order inflows, healthy topline growth, higher operating margins, and an improved working capital cycle beginning in FY24. SEBs are increasingly convinced of the TOTEX model, in which they will incur no capital expenditures for smart metres and instead make monthly (guaranteed) payments to AMISPs under the 'pay-as-you-save model.' We, as a company, will serve as both an AMISP (as per our limited appetite) and a smart metering vendor (a.k.a. technology provider) to other AMISPs. The TOTEX model will result in increased cash flow for SEBs, reducing the current working capital cycle significantly. Meters supplied to other AMISPs will be paid on an LC basis. Furthermore, because AMISPs will bear a significant portion of the capex, smart metre quality and timely delivery will be critical factors to consider when placing orders with metering companies, rather than simply selecting the lowest bidder. In comparison to conventional metres, the cost of smart metres can be anywhere from three to four times higher. In addition to that, they come packaged with a broad range of after-sales services. As a result of this, we anticipate a significant increase in revenue from smart metres, which typically have higher operating margins than traditional metres. All of this will, in the years to come, have the effect of reshaping the economic dynamics of the industry of smart metres in India. We build everything in-house, from conceptualization, design, tools room, moulding machines, assembly lines, and test labs, so we can meet the highest industry standards. This is our most valuable USP because it allows us to customise products to meet our clients' metering needs in a timely and cost-effective manner. We have developed our service capabilities concurrently with our technological capabilities, as we offer end-to-end service solutions such as meter installation, meter maintenance, data analytics, and MDM solutions, etc. This gives us a significant competitive advantage over our competitors. We have been in the electricity metering business for over two decades and currently have the largest market share in India, accounting for approximately 27%. We hope to re-establish our leadership position in the smart metering industry by building on our inherent strengths. As the largest player in the Indian metering sector, we are well positioned to benefit from the industry's multi-fold expansion.” Result PDF
Genus Power Infrastructures announced Q1FY23 results: Revenue stood at Rs. 187.0 crore, up by 43%, as against Q1FY22 revenue of Rs. 130.4 crore. Reduced capacity utilization as a result of a lack in supply of semiconductors and other essential electronic components continued to have an adverse impact on revenue growth. However, we expect that the normalcy in supply chain to be restored within next three months and anticipate a sharp revenue rebound in H2FY23 on account of robust orderbook and healthy order inflow. We anticipate the momentum to later continue throughout the remaining quarters of FY24 EBITDA stood at Rs. 14.3 crore, an increase of 183%, as against Rs. 5.1 crore of Q1FY22. Sequentially, higher prices for raw materials and a lack of operating leverage as a result of lower capacity utilization continued to hamper operating margins The Board of Directors has recommended a dividend of 25% (Re. 0.25 per equity share) for the financial year 2021-22, which is subject to approval of the shareholders Commenting on the performance Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, “With the implementation of the Revamped Distribution Sector Scheme (RDSS), we anticipate that the entire landscape of the Indian metering industry will undergo a radical transformation, resulting in a projected multifold increase in annual industry size. This will also result in a transition from conventional to smart meters in the Indian metering industry, allowing for better operating margins. In the new TOTEX (CAPEX + OPEX) model under the Design Build Finance Own Operate and Transfer (DBFOOT) arrangement, system integrators (also known as Advanced Metering Infrastructure Service Providers, or simply AMISPs) will be responsible for all capital expenditures, relieving SEBs of any financial burden. Starting in FY23, the Indian metering industry will see strong order inflows, healthy topline growth, higher operating margins, and an improved working capital cycle. Smart Meters are a value-added product that are three to four times more expensive than conventional meters. In addition, they come with a variety of after-sales services. As a result, we anticipate a substantial increase in revenue from smart meters, which typically have higher operating margins. All of this will alter the economic dynamics of the Indian smart metering industry in the coming years. SEBs are becoming increasingly convinced of the TOTEX model, whereby they will incur no capital expenditures for smart meters and will instead make monthly payments (which are guaranteed) to AMISPs under the ‘pay-as-you-save model’. We as a company will play dual roles of being AMISP (as per our limited appetite) as well as being smart metering vendors (a.k.a. technology providers) to other AMISPs. The TOTEX model will result in increased cash flow for SEBs, which will significantly reduce the current working capital cycle. The payment for meters supplied to other AMISPs will be on LC basis. In addition, because AMISPs will be responsible for a significant portion of the capex, the quality and timely delivery of smart meters will be crucial factors to consider when placing orders with metering companies, as opposed to simply selecting the lowest bidder. We are confident of meeting the highest industry standards because we are a fully vertically integrated company with backward integration and forward integration from the conceptual designing of the product to final packaging – wherein we build everything in-house from conceptualization, design, tools room, moulding machines, assembly lines, and test labs. This is our most important USP because it enables us to customise products to meet the specific needs of our clients in a timely and cost-effective manner, making us a one-stop shop for all their metering requirements. We have developed our service capabilities concurrently with our technological capabilities, as we offer end-to-end service solutions such as meter installation, meter maintenance, data analytics, and MDM solutions, etc. This provides us with a significant competitive edge over our rivals. We have been in the electricity metering business for over two decades, and we currently hold the highest market share of roughly 27% in India. On the foundation of our inherent strengths, we hope to recreate our leadership position in smart metering business. As the largest player in the Indian metering sector, we are well positioned to benefit from the multi-fold increase in the industry's size." Result PDF
Genus Power Infrastructures announced Q4FY22 results: Revenue stood at Rs. 181.0 crore, as against Q3FY22 revenue of Rs. 195.9 crore. The revenue growth continued to remain impacted due to reduced capacity utilization on account of shortage of semiconductors and other key electronic components. However, we have secured our supply requirements for semiconductors for FY23 and thus expect a healthy rebound in revenue on back of robust orderbook and surge in order inflow. EBITDA stood at Rs. 19.1 crore, as against Rs. 20.9 crore of Q3FY22. Higher raw material prices and lack of operating leverage due to lower capacity utilization resulted in lower operating margins. PAT stood at Rs. 11.0 crore, up by 34%, viz-a-viz Rs. 8.2 crore in Q3FY22. Commenting on the performance Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, “We expect the entire landscape of the Indian metering sector to significantly shift with the implementation of the ‘Reforms-Based, Result-Linked Power Distribution Sector Scheme’ with a projected multi-fold increase in yearly industry size. This will also result in a significant transition in the Indian metering industry from conventional meters to smart meters, allowing for substantially higher operating margins. This will be aided even more by the new TOTEX (CAPEX + OPEX) model under the Design Build Finance Own Operate and Transfer (DBFOOT) arrangement, in which SEBs will not be required to invest in capex because the same will be facilitated by Advanced Metering Infrastructure Service Provider (AMISP) a.k.a. system integrators. For the next 6 to 7 years, starting in FY23, this will result in strong order inflows, healthy topline growth, higher operating margins, and a significantly improved working capital cycle for the Indian metering industry. Smart Meters are a value-added product that is 3 to 4 times more expensive than traditional meters. They are also accompanied with a lot of after-sales services. As a result, we anticipate significant revenue inflow from service delivery towards smart meters, which typically have better operating margins. All of this will alter the Indian smart metering industry's economic dynamics in the coming years. SEBs are increasingly getting convinced of TOTEX model, whereby they will not have to undertake any capex for smart meters and undertake monthly payments (which are secured) to AMISPs under ‘pay-as-you-save model’. We as a company will play dual roles of being AMISP (as per our limited appetite) as well as being smart metering vendors (a.k.a. technology providers) to other AMISPs. The TOTEX model will result in enhanced cash flow for SEBs, resulting in a significant reduction in the present working capital cycle. The payment for meters supplied to other AMISPs will be on LC basis. Furthermore, because AMISPs will be responsible for a significant portion of the capex, quality and timely delivery of smart meters will be critical variables to consider when placing orders with metering companies, rather than merely selecting the lowest bidder. As we embark on this journey of momentous upcycle of the Indian metering industry, we are confident of meeting the highest industry standards for we are a full-fledged vertically integrated company with backward integration and forward integration from the conceptual designing of the product to final packaging – wherein we build everything in-house from conceptualization, design, tools room, moulding machines, assembly lines, test labs as well as our own communication software for providing end-to-end solutions. This is our most significant USP since it allows us to customize products to meet the specific needs of our clients in a timely and cost-effective manner, making us a one-stop shop for all their metering needs. We have developed our services capabilities alongside our technological capabilities since we provide end-to-end service solutions such as meter installation, meter servicing, data analytics, MDM solutions, and so on. This provides us with a considerable competitive advantage over our competitors. We have been in the electricity metering business for over two decades, and we currently hold the highest market share of roughly 27% in India. On the foundation of our inherent strengths, we hope to recreate our leadership position in smart metering business. As the largest player in the Indian metering sector, we are well positioned to benefit from the multi-fold increase in the industry's size.” Result PDF