Genus Power Infrastructures Limited Q1 FY25 Earnings Conference Call Insights

Key highlights from Genus Power Infrastructures Limited (GENUSPOWER) Q1 FY25 Earnings Concall

• Financial Performance
  • Revenue reached INR414 crores in Q1 FY ’25, representing a 59% increase from INR261 crores in Q1 FY ’24.
  • Gross profit margins increased to 44.4% from 34.6% in Q1 FY ’24.
  • EBITDA margin improved by 431 basis points to 15.3%.
  • Initial projects with high start-up costs now in mature stages, contributing to margin growth.
• Order Book
  • Total order book, including SPVs and GIC platform, stands at INR21,458 crores net of taxes.
  • Concessions span 8 to 10 years.
  • Full-scale execution expected to ramp up from Q3 FY’25 onwards.
  • Significant inquiries received from third-party advanced metering infrastructure service providers.
  • Potential order of 1.8 million meters in Punjab under process.
• Business Expansion
  • Expanding offerings to include smart water management solutions.
  • Launched smart ultrasonic water meter DM20 in Australia.
  • Exploring new opportunities in gas and water metering markets, both domestically and internationally.
  • Actively investing in workforce expansion and system enhancement.
• Future Outlook
  • Revenue target of approximately INR2,500 crores for FY ’25.
  • Expected EBITDA margins of about 15% to 16%.
  • Focus on operational excellence, innovation, and sustainable growth.
  • Well-equipped to address challenges related to large-scale project execution.
  • Company is positive about receiving new orders from quoted tenders.
  • Expecting increased execution in the second half of the fiscal year.
  • O&M revenue to contribute to overall growth.
  • Projected annual growth of more than 50-60%.
• Project Execution
  • Multiple circles gone live, including South Bihar and Assam.
  • Execution started in North India, Chhattisgarh, Maharashtra, and Uttar Pradesh.
  • Approximately 7-8 circles already live.
  • Financial closure is handled by the GIC platform, not directly by Genus Power.
• Financial Performance
  • Company is targeting revenue of INR 2,500 crores for the current fiscal year.
  • Q2 performance expected to be similar to Q1 due to seasonal factors.
  • Second half anticipated to have significantly better numbers.
  • Interest cost around 9%.
• Order Pipeline
  • A total of 25 crore smart meters to be installed nationwide.
  • Approximately 11 crore meters have been decided.
  • 4-5 crore meters are in different stages of quotation or negotiation.
  • 7 crore meters to be quoted in the next couple of months.
• Debt Position
  • Gross debt around INR 400 crores.
  • Net debt position is close to zero.
  • Gross debt expected to increase to support revenue growth.
  • No immediate plans for equity fundraising; growth to be funded through debt.
• Maharashtra Project
  • Company has 1.8 million single-site meters to be installed in Maharashtra.
  • Initial focus on system metering, HD meters, LTCT meters, and DP meters.
  • Residential meter installations may see a slight delay.
  • Overall long-term impact expected to be minimal.
  • Project originally planned to start in October-November.
• Working Capital Cycle
  • Current working capital cycle is higher due to initial project stages.
  • Expected to reduce to around 140 days once projects are fully operational.
  • Reduction in working capital cycle anticipated as projects mature.
• Fixed Price Contracts
  • Most contracts are fixed price for 12-18 months, sometimes up to 24 months.
  • Supply and installation typically completed within 27 months of contract signing.
• Equity Infusion Plans
  • Total planned equity infusion of around INR 1,700 crores into the platform.
  • Infusion to be spread over next 3-4 years.
  • Approximately 20-25% expected to be infused this year.
  • Company currently has cash reserves of INR 500-600 crores.
  • Funding expected to come from existing cash and some debt.
• Manufacturing Capacity
  • Capable of producing 1.1 million meters monthly.
  • Continuously building execution capabilities.
  • Plant capacity enhancement underway, expected to be live by end of September.