Success of smart metering and future growth prospects

Have you ever heard of smart metering systems? It’s a super smart version of the electric meter you have at home. Rather than just sitting there, we’re constantly working to help you and your electric company better manage your energy.

Imagine this: you’re at home, the lights are on, and you’re probably watching TV. While you do all that, your smart meter quietly tracks how much electricity you’re using, like a helpful little assistant.

But it doesn’t end there. You can also send this information directly to your electric company, so you can know exactly how much electricity you’re using without having to go to your home and check the meter yourself.

So why is this important? First of all, it means your bill is more accurate because it’s based on the exact amount of electricity you used. Plus, with real-time updates on your energy usage, you can see where you’re using too much energy and find ways to save energy and money.

Now let’s talk about the company that makes all of this possible. They’re not just making smart meters, they’re leading the way in revolutionizing the way we use and manage electricity.

Stock performance has been astonishing. The company’s stock price has soared nearly 250% over the past year. If you look at it over three years, it produced an incredible return of 590%.

In this article, we’ll take a closer look at the company, explore its business segments, and find out how management is targeting massive growth going forward.

Genus Power Company Overview

speed has been a pioneer in power metering, producing smart meters for over 25 years. With a large integrated facility spanning 65,000 m2, the company has successfully deployed over 75 million electricity meters.

These products are suitable for a variety of sectors including residential and commercial buildings, industrial facilities, and open access/grid networks. Genus Power also provides customized engineering, construction and contracting (ECC) solutions to transmission and distribution companies, providing comprehensive services on a turnkey basis.

On the ECC project side, Genus Power has handled a wide range of work, including construction of transmission lines, towers, substations, switchyards and network upgrades for utility companies. This extensive experience has honed the company’s expertise and positioned it well for its upcoming large-scale Advanced Metering Infrastructure (AMI) projects.

In addition to meter production, Genus Power also provides domain-specific software and Software as a Service (SaaS) solutions, such as Facility Management Services (FMS), to meet the diverse needs of its customers.

Primarily known for its electricity smart meters, the company has expanded its portfolio to include manufacturing smart gas meters that can accurately measure LPG and natural gas volumes. This diversification highlights Genus Power’s commitment to innovation and meeting the changing needs of the energy sector.

Genus Power’s business divisions

Smart energy metering solution

With over 20 years of expertise in the field, Genus Power offers a complete suite of intelligent energy metering solutions and services, all conveniently available under one roof.

This comprehensive scope includes smart meters, communications infrastructure, headend systems, meter data management systems, IT infrastructure, project management services, mobile apps, and more.

smart gas meter

Genus provides smart gas meters to home consumers. According to reports, Genus is the first company in India to obtain BIS license for petrol meters.

Genus is exploring new opportunities to expand these business verticals. The smart petrol meter market will undoubtedly grow rapidly due to its enormous potential and numerous opportunities, including digitization of distribution grids, optimization of network operations, smart city drive, digital India drive, drive for advanced metering infrastructure, and increasing investments in smart grid. no see. technology.

Engineering, Construction and Contracting (ECC) in the Power T&D sector

Genus Power provides complete start-to-end solutions known as Engineering, Construction and Contracting (ECC) to the Indian power distribution sector.

Within this framework, the company provides customized solutions for transmission and distribution utilities, integrating cutting-edge technologies throughout the entire process, from concept to implementation.

This comprehensive approach is geared toward ensuring power supply operations are safe and economically efficient while improving the utility’s overall profitability.

Finance of Genus Power

In FY 2023, Genus Power Infrastructure saw significant growth in its revenue, surging 18% to reach ₹808 crore compared to ₹685 crore in FY 2022.

On the other hand, net profit declined by 38% from ₹73 crore in FY2022 to ₹45 crore in FY2023.

Revenues were primarily derived from sales of metering solutions to electric utilities. However, ongoing shortages of semiconductors and other electronic components hampered profit growth and reduced capacity utilization in FY 2022-23.

In fiscal 2023, Genus Power Infrastructure maintained decent financial metrics, with a return on equity (ROE) of 2.95% and a return on equity (ROCE) of 6.78%.

Genus Power’s future plans

Growth engine of national smart metering business

The Indian weighing industry has been facing numerous challenges in recent years. However, the introduction of the Revamped Distribution Sector Scheme (RDSS) is revolutionizing the landscape and is leading to a significant increase in the annual volume of the industry. These changes are driving the shift from traditional meters to smart meters across sectors.

The implementation of the new TOTEX model, which operates on a Design Build Finance Own Operate and Transfer (DBFOOT) basis, further supports this transition.

In the TOTEX model, system integrators, also known as Advanced Metering Infrastructure Service Providers (AMISPs), assume responsibility for all capital expenditures, relieving the financial burden on State Electric Power Boards (SEBs). The Government of India (GoI) is leading the national smart metering project as part of the RDSS and aims to install 250 million meters by 2025, with an estimated investment of $30 billion.

This initiative is expected to drive significant order inflow, drive robust revenue growth and significantly improve the working capital cycle of the Indian metering industry in the coming years.

Partnership with GIC

GIC, a global fund manager of Singapore’s foreign exchange reserves, has teamed up with Genus Power Infrastructure to form a joint venture aimed at financing smart metering projects.

This collaboration marks the launch of a platform with an initial pipeline of $2 billion. GIC will hold a 74% stake in the platform and Genus will contribute the remaining 26%.

Under the agreement, Genus Power will issue share warrants to Chiswick Investment Pte, an affiliate of GIC, equivalent to 15% of the company’s paid-up capital upon dilution. The main focus of this platform is to execute orders received from the Revamped Distribution Sector Scheme (RDSS).

Under the plan, the Indian government aims to deploy 250 million smart meters by 2050, which could reduce technical and commercial losses for utility companies by up to 15%.

solid order book

Genus Power Infrastructures Limited is poised for strong growth in the coming years, driven by robust order volumes exceeding Rs. 20,000 crores (excluding taxes). The company has secured a series of prestigious orders for installation of approximately 1.82 billion smart prepaid meters worth approximately Rs. 1618.5 billion won.

With a 27-30 month execution cycle for its current order book, the company has healthy visibility into revenue growth, especially for FY25 and FY26.

Management also expects a steady flow of orders in FY25, with a number of state utility boards commencing bidding processes for smart meter procurement, highlighting the positive impact of ‘reform-based, results-linked distribution sector plans’. .

The company’s impressive order volume and expected steady influx of new orders provide promising prospects for future sales growth.

conclusion

With a strong order book, strategic partnerships and government initiatives driving the adoption of smart metering solutions, Genus Power Infrastructures Limited appears well-positioned to achieve significant growth in the coming years. The company’s diverse products and extensive industry experience position it as an attractive player in this rapidly evolving field.

What are your thoughts on Genus Power’s outlook and the future of smart metering in India? Please share your insights in the comments below.

Written by Nalin Surya

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