The shares of the leading player in power transmission company hit 5 percent upper circuit after the company’s net profit and revenue zoomed by 291 percent and 59 percent YoY, respectively in Q2FY25.
With a market capitalization of Rs 45,443.14 crore, the shares of GE Vernova T&D India Ltd were trading at Rs 1,774.80 per share, increasing around 5 percent as compared to the previous closing price of Rs 1,690.30 apiece.
Reason for rise:-
The shares of the company saw positive movement after GE Vernova T&D India Ltd announced their robust financial performance in which revenue magnified by 59 percent on a year-on-year basis from Rs 698 crore in Q2FY24 to Rs 1,108 crore in Q2FY25. However, on a Quarter-on-Quarter basis, revenue zoomed by 16 percent from Rs 958 crore in Q1FY25 to Rs 1,108 crore in Q2Y25.
Moreover, net profit is stretched significantly by 291 percent on a yearly basis from Rs 37 crore in Q2FY24 to Rs 145 crore in Q2FY25, meanwhile, on a quarter-on-quarter basis, net profit also jumped by 7 percent from Rs 135 crore in Q1FY25 to Rs145 crore in Q2FY25.
Order Book:-
In Q1 FY25, order bookings rose 2% YoY to ₹10.3 billion, with a major order from PGCIL for Ladakh’s SLDC and REMC. Order backlog reached ₹62.8 billion, up 59% YoY. In July 2024, ₹13 billion in orders were secured, including key export orders.
Operational highlights:-
The company improved operational efficiency through on-time delivery, cost optimization, and lean processes. Key projects commissioned include a 400 kV UPPTCL transmission line at Sahupuri and substations for TPDDL in Delhi. Ongoing work with long-term clients strengthens its transmission network further.
Margin Improvement:-
In Q1 FY25, gross margin rose to 40.3% from 34.4% last year, driven by better pricing, project mix, and efficiency gains. EBITDA reached ₹1.9 billion, with the EBITDA margin improving significantly to 20.2% compared to 8.7% in Q1 FY24.
Industry overview:-
India’s expanding power transmission grid demands advanced T&D solutions, aligning with its Viksit Bharat 2047 vision for reliable electricity. Management remains optimistic, focusing on selective market engagement to prioritize clients with favorable payment terms and higher margins, minimizing exposure to high-risk markets.
Future outlook:-
The company expects increased order inflows from Power Grid’s expanded capex and capitalization plans for FY25 and FY26. It remains focused on advancing automation and digital solutions for grid management, aligning with the rising demand for data center infrastructure.
Company profile:-
GE T&D India Limited is an India-based company that is engaged in the power transmission and distribution business. The Company’s business activity relates to products, projects, and systems for electricity transmission and related activities.
Written by:- Abhishek Singh
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