 "renewable energy, wind energy")
Shares of GE T&D India hit over five-year high of Rs 361.80, and were frozen at the 5 per cent upper circuit at 10:33 am on Thursday, in otherwise weak market. In comparison, the S&P BSE Sensex was down 0.33 per cent at 65,322.
The stock of heavy electric equipment company has locked at tthe upper circuit for the sixth straight day, surging 34 per cent during the period, after the company reported improved financial performance for June quarter (Q1FY24).
Thus far in the month of August, the stock has rallied 42 per cent. While, so far in the current calendar year, it has zoomed 212 per cent, as against 7 per cent rise in the benchmark index. It now quotes at its highest level since May 2018.
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In Q1FY24, GE T&D India reported 67.9 per cent year-on-year (YoY) growth in its order book at Rs 1,010 crore, as against Rs 600 crore in Q1FY23. The orders received during the quarter, includes supply of 765 kV GIS & 400 kV GIS with Bus Duct for Power Grid Corporation of India Limited (PGCIL) at Raigarh and Kotra on turnkey basis. The company also received order for extension of 132 kV AIS & 220 kV Gas Insulated Substation (GIS) with Substation Automation for Hindalco at Lapanga and Hirakud on turnkey basis.
In Q1FY24, the company’s profit after tax jumped over four-fold to Rs 28.24 crore from Rs 6.36 crore in a year ago quarter. Sales revenue grew 22 per cent YoY to Rs 720 crore from Rs 590 crore in Q1FY23.
The management said the macro-economic conditions in India are favourable for the power sector, with strong demand growth and government support for investment in new infrastructure.
The Indian Power sector is undergoing constant and consistent growth, driven by a focused approach to incorporate more Renewable power into the grid. With a higher share of Renewable energy in the grid, there is a need for an optimal mix of conventional power to meet the growing demand from industrial and domestic consumers, which is driving the country's economic growth. The aim is to achieve the target of 'Green Power for All' and attain net zero CO2 emissions as committed in COP26 by the Government of India.
Over the next five to ten years, the Transmission and Distribution (T&D) market is expected to grow steadily due to several factors includes, the target of installing around 500 GW of renewable energy capacity by 2030, continued focus on system strengthening and upgrading aging infrastructure by both state and central governments and India's commitment to reducing carbon footprint by 50 per cent by 2030 as part of COP26.
The increasing adoption of electric vehicles (EVs) leading to a surge in electricity demand and the need to upgrade the grid infrastructure with advanced technologies. The 'National Electric Mobility Mission Plan' aims for maximum EV adoption by 2030, GE T&D India said in FY23 annual report.
