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Shares of Genus Power Infrastructures, a leading Metering solutions provider & manufacturer for the power distribution industry, were locked in the 10 per cent upper circuit at Rs 263.85 on BSE on Monday at 10:55 AM backed by heavy volumes. A combined 1.3 million shares changed hands and there were pending buy orders for around 200,000 shares on the BSE and NSE.
In past one month, the stock has rallied nearly 50 per cent as the company anticipates a robust surge in order volumes to continue during the forthcoming quarters of fiscal year 2024.
Meanwhile, in past three months, the stock has zoomed 204 per cent after the company on July 7, signed definitive agreements with Gem View Investment Pte Ltd, an affiliate of GIC, Singapore (GIC) for setting up of a Platform for undertaking Advanced Metering Infrastructure Service Provider (AMISP) concessions. Genus Power would be the exclusive supplier to the Platform for smart meters and associated services. GIC will hold a 74 per cent stake; the balance will be Genus.
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On August 11, the company’s board approved allotment of 45.98 million share warrants convertible into equal number of equity shares to Chiswick Investment Pte, another affiliate of GIC, at an issue price of Rs 112.88 per warrant on preferential basis.
Meanwhile, post the order inflows in August 2023, Genus Power’s total order book, currently stood in excess of Rs 8,200 crore. Many State Electricity Boards (SEBs) have initiated the process of inviting bids for the deployment of smart meters, which serves as a testament to the positive impact of the 'Reforms-Based, Result-Linked Power Distribution Sector Scheme'.
Based on its analysis, the company anticipates a robust surge in order volumes to continue during the forthcoming quarters of fiscal year 2024.
While there have been encouraging signs of recovery in semiconductor and other critical electronic component supply chain disruptions over the past year, lingering effects of these disruptions continue to have an impact on our top-line performance. This is primarily due to suboptimal capacity utilisation. The company also witnessed a decline in its operating margins in Q1FY24. This can be attributed to the prevalence of legacy orders, which resulted in lower margins. We anticipate that the current backlog of low margin legacy orders will be mostly executed in Q2FY24, the management said.
The management anticipates a substantial recovery in revenue from Q3FY24 onwards on back of our robust orderbook and consistent order inflow, further bolstered by the normalisation of the supply chain.
