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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.
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