Genus Power Infrastructures Limited is an B /T+1 group Other Electrical Equipment company with having Face value of Rs. 1. Genus Power Infrastructures Limited is one of the largest players in India’s electricity metering solutions industry with 27% market share in Meter Industry and a 70% market share in Smart Meters and 70,000,000+ installed energy meters. It is market leader in various kinds of meters and has developed ‘smart metering solutions,’ with its in-house R&D centre. It also has an engineering, construction, and contracts (ECC) division which supplements the existing meters business. Company has manufacturing plants across Jaipur, Haridwar and Guwahati with a total installed capacity of over 10 million meters. Company’s key customers include the major State electricity boards (SEB’s) and private utilities. As on March 31, 2023, the order book of the Company stood at Rs. 1,696 crore (net of taxes) and including LOA received by wholly owned subsidiaries, total order-book stood at is Rs. 4,115 crores (net of taxes) apart from that Several State Electricity Boards (SEBs) have requested and invited bids for the installation of smart meters, demonstrating the tangible impact of the ‘Reforms-Based, Result-Linked Power Distribution Sector Scheme’. In International markets it executes orders to countries like Nepal, Malaysia, Bangladesh, Sharjah, Central African Republic, Zanzibar, Nigeria, Thailand, Philippines, Singapore, Indonesia, Myanmar, Vietnam etc. and it is planning to enter countries like Australia, Europe, and US. Its ECC solution includes the installation of transmission lines, distribution lines, HVDS, and switchyards and substations up to 220 KV under which country has already achieved key milestones such as 100 kilometers of 132kV transmission line and 132kV sub-station, One million plus BPL connections, Rural electrification of more than 10,000, 25,000 kilometers LT lines, 9,000 kilometers of HT lines, More than 60 substations of different ratings upto 220kV, 10,000 kilometers HVDS project (Single phasing work) and 220 kV LILO Transmission Line and 220/132/33 kV Sub-stations. Apart from these company also offers Smart Gas Meters to domestic consumers it is reportedly the first company in India to receive the BIS license for Gas Meter and company is working on new avenues to expand this vertical business field.

Fundamentals (FY22-23):

Financial Results:

Company’s Net Sales was at Rs 261.11 crore in June 2023 up 39.6%, Quarterly Net Profit at Rs. 23.05 crore in June 2023 up 93.08% and EBITDA stands at Rs. 47.50 crore in June 2023 up 95.15% as compared to June 2022. Company’s EPS has increased to Rs. 1.00 in June 2023 from Rs. 0.52 in June 2022.

Key Points:

1. Company’s step-down wholly owned subsidiary had received a LOA of Rs. 2,247.37 crore (net of taxes) for appointment of Advanced Metering Infrastructure Service Providers including design of Advance Metering Infrastructure (AMI) system with supply, installation, and commissioning with FMS of 24.18 Lakh Smart Prepaid Meters, system meters including OT Meters with corresponding energy accounting under DBFOOT model.
2. Genus Power Infrastructures Limited’s wholly owned subsidiary has received a LOA of Rs. 2,209.84 crore (net of tax) for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including 21.77 Lakhs Smart Prepaid Meters, on DBFOOT.
3. Company recently signed a definitive agreement with Gem View Investment Pte Ltd, an affiliate of GIC, Singapore) for setting up of a Platform for undertaking Advanced Metering Infrastructure Service Provider concessions in which GIC will hold 74% stake while Genus will hold 26% stake with an initial capital outlay of (approx.) USD 2,000,000,000 (USD Two billion).
4. Company has also received a letter of award (LOA) of Rs. 2,207.53 crore for appointment of Advanced Metering Infrastructure Service Provider including 27.69 Lakhs smart meters.
5. Genus Power Infrastructures Ltd. and its 100% subsidiary company (Hi-Print Metering Solutions Private Limited) have received LOA of Rs. 2,855.96 crore for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including 29.49 Lakh smart meters.
6. Company has also received Rs. 325cr worth of orders across Exports geography and Domestic geography.
7. It was the first company in Asia Pacific to achieve the milestone of supplying 1.5M Smart Meters to EESL (Energy Efficiency Services Ltd), bearing a testimony of the manufacturing capability of an Indian company for such an advance meter amid global competition.
8. Company has also set up an Advanced Metering Infrastructure (AMI) lab at its Smart Grid Knowledge Centre of Powergrid Corporation of India Limited (PGCIL) at Manesar, Gurgaon.
9. Company also won an order for supply, installation, shifting & commissioning of ~30,000 3Q meters, LT CT & HT meters with accessories including generation of first bill cycle & other incidental services at order value of Rs. 125 Crores.
10. It also bagged an order from Jharkhand Bijli Vitran Nigam Limited (JBVNL) for supply, Installation, Commissioning, Data Collection, Report Generation and Annual Maintenance contract for 5 years of 10,000 Distribution Transformer Meters with an inbuilt CT & Modem feature at the order value of Rs. 54 Crores.
11. Company also won an order from EESL for supply of 13.5 lakh smart meters for the states of Haryana and Uttar Pradesh.
12. Genus Power Infrastructures Ltd, has entered into an agreement with Global Utilities Management Co, (GUMCO), Nigeria to assist them as a technical partner in the establishment of a Meter Assembling & Testing unit. It has also signed an intent for order with GUMCO for supply of Energy meters worth Rs. 20 Crores as per specific requirement of local Discom.
13. In international markets, company is speeding up its efforts to be part of the smart meter rollout in Thailand, Philippines, Singapore (2’nd roll out), Indonesia, Myanmar, Vietnam and the other bigger utility (TNB) in Malaysia. It also continues to be a major player in the residential metering in Nepal along with a breakthrough in Bangladesh.
14. Company has also bagged a prestigious order from an island in the Central Pacific Ocean which is expected to be executed in 2023-24. It is also exploring to become an OEM manufacturer for electrical and electronic goods for reputed US and European manufacturers.

In last 3 Years the stock gave a return of 835.60% as compared to the rise of Sensex and Nifty in the same period.

Smart meters would play a crucial role in India’s ongoing journey towards improving power sector efficiency and Government of India (“GoI”) has also announced an ambitious plan of implementing the National Smart Metering Project, under the Revamped Distribution Sector Scheme (RDSS), with a plan to install 250 million meters by 2025 at an estimated investment of US$30 bn and company is well poised to enjoy large order inflows from this ambitious plan. Genus aims to provide services and support in various upcoming revenue models - Capex/Opex/Totex and increase focus on ECC projects along with its grip in Smart Metering, Metering and Smart Gas Meters market. Considering the surge in demand in Smart Metering industry across the globe and company’s wide spread presence in domestic as well as international markets, strong order book position, GOI’s ambitious plans for the industry and good financial positions of company, investors can invest in this company for long term period.

HET ZAVERI

info@smartinvestment.in

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