Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue increased by 59% to INR414 crores compared to INR261 crores in Q1 FY24.
- Gross profit margins improved significantly to 44.4% from 34.6% in Q1 FY24.
- EBITDA rose by 121% to INR63 crores, with EBITDA margin improving by 431 basis points to 15.3%.
- PAT increased by 120% to INR42 crores compared to INR19 crores in Q1 FY24.
- Robust order book of INR21,458 crores, positioning the company for sustained growth.
Negative Points
- Variability in gross margins expected across quarters due to project execution timelines.
- Rise in employee and other expenses due to workforce expansion and system enhancements.
- Gross debt stands at INR400 crores, with expectations of further increase.
- Initial stages of projects result in higher working capital cycles.
- Potential impact from Maharashtra government putting some residential meter orders on hold.
Q & A Highlights
Q: How many circles have gone live among the order we have won? And in how many circles have you achieved financial closure?
A: Currently, all four projects of our firm are live. Execution has started in North Bihar, Chhattisgarh, Maharashtra, and UP. Financial closure is handled by GIC, and many circles have already been closed by them. - Jitendra Agarwal, Joint Managing Director
Q: Can you talk about the tender pipeline for the next four to six months?
A: The tender pipeline includes a couple of tenders in Gujarat, one in Goa, and a few in Haryana. - Jitendra Agarwal, Joint Managing Director
Q: What is the interest cost and debt position as of now?
A: The interest cost is around 9%, and the gross debt is approximately INR400 crores. The net debt is zero. - Kailash Agarwal, Vice Chairman
Q: Do we anticipate a fund raise in the near future?
A: No, we do not anticipate a fund raise. It will be managed through debtors. - Kailash Agarwal, Vice Chairman
Q: Do we expect Q2 to be similar to Q1, and will H2 be a heavier quarter?
A: Q2 will be similar to Q1 due to monsoon impacts. H2 will have better numbers than H1. - Jitendra Agarwal, Joint Managing Director
Q: Are there any impacts from the Maharashtra government's decision to put some residential meter orders on hold?
A: There will be a slight impact on speed initially, but no long-term impact. We have around 1.8 million single-phase meters to be installed in Maharashtra. - Jitendra Agarwal, Joint Managing Director
Q: What are the working capital days, and how are they expected to change?
A: Currently, the working capital cycle is higher due to project initiation stages. It is expected to reduce to around 140 days once projects are in proper shape. - Kailash Agarwal, Vice Chairman
Q: What is the status of the INR11,000 crores worth of orders where we were L1 last quarter?
A: Negotiations are ongoing, and the process is still in progress. - Jitendra Agarwal, Joint Managing Director
Q: What is Genus' market share in the current installation trend of 6 to 7 lakh meters per month in India?
A: Genus is currently installing around 2 to 3 lakh meters every month. - Jitendra Agarwal, Joint Managing Director
Q: How are we protecting ourselves from adverse price movements in fixed-price contracts?
A: We follow the same safety processes as in our previous meter supply contracts, which have historically been fixed-price. - Jitendra Agarwal, Joint Managing Director
Q: Can you provide an update on the equity infusion of around INR1,700 crores in the platform?
A: The equity infusion will be spread over the next three to four years, with 20% to 25% expected this year. - Kailash Agarwal, Vice Chairman
Q: What is the expected timeline for executing the current order book?
A: Most projects will be completed within 27 months from the contract signing date. - Jitendra Agarwal, Joint Managing Director
Q: What are the projected order inflows for FY25 and FY26?
A: We expect substantial growth in order inflows, with a focus on maintaining our execution capabilities. - Jitendra Agarwal, Joint Managing Director
Q: What is the progress on the Guwahati plant capacity addition?
A: The capacity enhancement is under progress and expected to be live by the end of September. - Jitendra Agarwal, Joint Managing Director
Q: Are we still on track to install 6 million to 7 million meters in FY25?
A: Yes, we are on track to install around 6 million meters this financial year. - Jitendra Agarwal, Joint Managing Director
Q: What is the potential for revenue growth over the next three to four years?
A: We expect more than 50% to 60% growth annually, driven by our current order book and additional revenues from other AMISP and O&M. - Kailash Agarwal, Vice Chairman
Q: Can you provide additional information regarding our strategy towards gas and water metering?
A: We see significant potential in water metering, especially with the shift from electromechanical to smart electronic meters. We are focusing on this segment both domestically and internationally. - Jitendra Agarwal, Joint Managing Director
Q: What is our tax guidance for FY25?
A: We are in a 25% tax regime. - Kailash Agarwal, Vice Chairman
Q: Can you break down the INR21,500 crore order book?
A: Out of INR21,500 crores, INR19,000 crores comes from the AMISP platform. The remaining comes from other orders. The order book is divided into platform costs, O&M, and initial execution revenues. - Jitendra Agarwal, Joint Managing Director
Q: What is the competitive intensity in the industry?
A: The competitive landscape has remained similar over the past six to nine months. - Jitendra Agarwal, Joint Managing Director
Q: How many smart meters have been installed by Gen
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
