Genus Power Infrastructures Ltd’s shares were up by 9 per cent after the company reported a 93 per cent increase in profit for the quarter ended June 30, 2023, at Rs 23.05 crore, compared to Rs 11.94 crore in the corresponding quarter last year.

Revenues were up by 39 per cent at Rs 261.11 crore, compared to Rs 187.04 crore last year. Sequentially, profits were higher by 192 per cent, compared to Rs 11.28 crore in the previous quarter.

According to a report by ICICI Securities, “Genus Power Infrastructures (Genus) has reported a sharp uptick in order inflows in smart meters over the last six quarters. Ordering activity is likely to remain strong over the next few years. Armed with capital commitment from GIC, it remains in a position to win a further set of orders. It reported revenue growth of 40 per cent YoY and EBITDA growth of 2x on an improvement in operating margins by 330bps YoY to 10.9 per cent, on higher execution of smart meter orders and easing raw material prices.”

According to the report, Genus’ orderbook touched Rs 8,200 crore due to a Rs 2,200-crore order win in July 2023, marking a 3.5x YoY increase. Legacy orders now constitute just 5 per cent of the total orderbook, although they still make up 30-40 per cent of FY24E execution, impacting near-term operating margins.

Despite this, the near-term outlook remains strong, as multiple discoms have bid orders worth Rs 43,000 crore, with Rs 27,000 crore tenders expected in the next few months. While Genus has secured its entire orderbook independently, it can also supply smart meters to other players with AMISP contracts, bolstering order inflows.

The shares were up 9 per cent at Rs 228 at 12.10 pm on BSE. At 2:15 pm, the shares were at Rs 228.10, up 9.37 per cent.