GE Vernova T&D India Ltd. share price target

GE Vernova T&D (GE) has again delivered a strong performance (in Q3FY25) post Q2, with revenue up 28% YoY to INR 10.7bn and EBITDA soaring 86% YoY to INR 1.7bn, driven by a sharp margin expansion to 16.7% (+520bps YoY). That powered PAT to INR 1.4bn—almost triple to last year’s figure led by better product mix and improved utilisation.

GE T&D India’s (GETD) operating profit margin came in at 8.7% – up 161bps sequentially and 791bps YoY forming a new high in operating margin in the past 18 quarters. Revenue was flat YoY and declined 3% sequentially to INR 7bn. Order inflow for the quarter stood at INR 11bn, up 121% YoY.

GE T&D India’s (GETD) operating profit margin came in at 7.1% – up 310bps sequentially and 330bps YoY. It is the company’s highest operating margin in past 16 quarters. Revenues grew 21% YoY and operating profit 127% YoY. Order inflow for the quarter stood at INR 11bn, up 67% YoY.

GE T&D India (GETD) reported a weak set of numbers for Q4FY23 with subdued revenue and net loss due to lower opening order backlog and reduced profitability as a result of increased cost of certain electronics and execution of low-margin orders.

GE T&D India’s (GETD) revenues declined 15% YoY to Rs7.8bn in Q3FY23 as lower orderbook led to muted execution. However, EBITDA jumped 57% YoY to Rs458mn as EBITDA margin expanded 270bps YoY, mainly led by 1,200bps YoY gross margin expansion.

GE T&D India’s (GETD) revenue declined 18% YoY to Rs7bn in Q2FY23 as weaker orderbook led to muted execution.

GE T&D India’s (GETD) revenue declined 7% YoY to Rs 5.9bn in Q1FY23 as the lower orderbook led to a muted execution.

Higher freight cost, forex loss (Rs60-70mn) and higher reimbursement expenses impacted EBITDA margin (0.2% in Q1FY22). GE T&D; (GETD) reported poor quarterly performance led by lower execution and higher expenses. Revenue was flat YoY at Rs6.4bn, due to closure of most of the factory for nine days due to pandemic. Despite increase in commodity price, gross margins expanded (32.3% in Q1FY22) due to better product mix with higher contribution of product business, though it is...

Delay in order finalization leads to 45% decline in OI, but healthy ordering visibility seen in both domestic and international markets. GE T&D; (GETD) reported strong quarterly performance led by stellar execution, cost rationalization measures and higher other income. Sales grew by 10% YoY as manufacturing and project sites were operating at full capacity. Order inflow decline 45% to Rs6.9bn owing to delay in order finalization. Order book stood decent at Rs49bn (excluding L1 Rs3bn)...

Net Borrowings stands at Rs3.3bn as on 3QFY20 compared to Rs4.3bn in 2QFY20 due to better collections and turnaround of inventory. GE T&D; reported weak set of numbers for 3QFY20 on the back of lower opening order backlog (HVDC nearing completion), weak fresh order inflows,...

YoY to Rs39 mn. Company reported net adjusted loss of Rs205 mn during the quarter against PAT of Rs396 mn in 2QFY19. Order inflow during 2QFY20/1HFY20 was down 5%/17% YoY. While many Green Energy Corridor (GEC) orders were tendered out during the quarter, most of them are under final negotiations and expected to be awarded in 2HFY20. The Bangladesh HVDC project has been put on hold in order to ascertain measures to further reduce the project cost. With ongoing liquidity crisis, company raised debt...

Dragged by sub-par execution: 1QFY20 sales declined 37% YoY to INR7.3b, below our est. of INR11.9b. Execution during the quarter was hurt by declining HVDC sales, non-execution of stressed projects and postponement of a few project executions to 2QFY20 (from 1QFY20). This, along with operating de-leverage led to EBIDTA miss (-71% YoY to INR424m v/s our est....

GE T&D; India Ltd's (GETD's) 1QFY20 revenue growth performance was Change in Estimates | Target | Reco weakest in last seventeen quarters. Revenue was down 37% YoY (-34% ExHVDC order) at Rs7.3 bn lead by lower opening order backlog, weak order...

GE T&D; India Ltd's (GETD) execution picked up in 4QFY19 with revenue up Change in Estimates | Target | Reco 10% YoY (Ex-HVDC, revenue grew 20% YoY). However, FY19 revenue fell 3%YoY (Ex-HVDC, up 9%YoY) due to 1) weak order inflow (down 4%YoY in...

20 February 2019 Sales declined 19% YoY to INR11.7b due to lower availability of HVDC orders for execution. Three of the four poles for the Champa Kurukshetra (CK) line are completed, and order backlog available for execution for the CK line stands at INR2b. Gross margin improved 670bp YoY to 33%, given reduced execution of the CK order (INR838m v/s INR3,607m in 3QFY19) where margins were lower. EBIDTA margin improved 450bp YoY to 9.6%, supported by a better revenue mix. Order intake increased 84% YoY to INR14.4b, given better order finalization from private and state/central utilities. Private constituted 50% of orders and the balance came from state and central utility orders. Ordering has been supported by the Saubhagya scheme-related state utility capex. Order backlog stands at INR64b, providing revenue visibility for the next 18 months.

20 November 2018 Sales grew 14% YoY to INR9.9b, led by execution of (a) transmission projects for PGCIL, CSPTCL and Surya Urja, (b) two air-insulated substation projects for CSPTCL and (c) R&D; facility for BARC. EBITDA grew 15% YoY to INR921m (in-line). PAT rose 8.3% YoY to INR515m, below our estimate of INR645m due to lower other income (INR238m v/s our estimate of INR400m) and a higher tax rate (36% v/s our estimate of 32%). EBIDTA margin came in flat YoY at 9.3% (in-line). Order intake increased by a muted 2% YoY to INR7.2b, given lower PGCIL ordering and non-finalization of TBCB orders. GETD expects ordering from state SEBs to remain strong; it is also targeting neighboring countries to grow the exports business. We maintain our visibility on orders (on account of muted capex from PGCIL in the near-to- medium term) adds an element of uncertainty over growth.