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.