This small-cap smart meter stock is engaged in manufacturing and providing metering and metering solutions and undertaking engineering, construction, and turnkey contracts, plunged by 5.09 percent despite the company reporting strong quarterly results with a 132.58 percent YoY increase in revenue, and in this article, we explain the reasons behind its share price decline.
Stock Price Movement:
In Tuesday’s trading session, Genus Power Infrastructures Limited‘s share reached an intraday high of Rs. 318.95 per equity share, rising 4.47 percent from its previous day’s close price of Rs. 305.30.
Since then, the stock has retreated and is currently trading at Rs. 289.25 per equity share, which is down by 5.09 percent from the previous day’s close. The market capitalization now stands at approximately Rs. 8,791.12 crore.
Q3 FY25 Result Walkthrough:
Coming into the quarterly results of Genus Power Infrastructures Limited, the company’s consolidated revenue from operations increased by 132.58 percent YOY, from Rs. 259.78 crore in Q3 FY24 to Rs. 604.20 crore in Q3 FY25, and grew by 24.10 percent QoQ from Rs. 486.88 crore in Q2 FY25.
In Q3 FY25, Genus Power Infrastructures Limited’s consolidated net profit has turned negative into positive, from a net loss of Rs. 9.92 crore in Q3 FY24 to a profit of Rs. 56.66 crore in Q3 FY25. As compared to Q2 FY25, the net profit has decreased by 31.80 percent, from Rs. 83.08 crore.
The basic earnings per share increased by 216.67 percent and stood at Rs 2.05 as against Rs. 3 recorded in the previous quarter.
Reason for share falls:
Genus Power Infrastructure Limited’s stock has declined despite posting strong year-on-year (YoY) quarterly results. The possible reasons for this drop could be muted quarter-on-quarter (QoQ) performance and weak market conditions. The overall market has fallen by nearly 11–12 percent, which may have impacted investor sentiment, leading to a decline in the company’s stock price.
Additionally, the company’s debt has increased in FY25. In March FY24, its borrowing stood at Rs. 588 crore, which increased to Rs. 1,173 crore by September FY25, marking a rise of nearly 99.5 percent. As a result, its debt-to-equity ratio has reached 0.71. The rise in debt could be due to expansion plans or higher working capital needs, raising concerns among investors.
Order Book:
As of December 31, 2024, Genus Power Infrastructures Limited’s executable order book stands at Rs. 31,302.49 crores (excluding taxes). Of this, Rs. 29,033.74 crores worth of orders will be executed under a joint venture agreement managed by Gemstar Infra Pte. Ltd., ensuring strong project execution capabilities.
Future plans and guidance:
Genus Power Infrastructure Limited is expanding into gas and water metering markets globally and domestically. To meet rising demand, it aims to scale smart meter production to 15 million units annually by FY25.
The company aims for Rs. 2,500 crore in revenue for FY25 with EBITDA margins of 15 percent to 16 percent, reflecting strong growth ambitions and increasing demand for smart metering solutions in both domestic and global markets.
Manufacturing Facilities:
Genus Power Infrastructure Limited operates advanced manufacturing units, R&D centers, and corporate offices across India, including Sitapura (Jaipur), Haridwar (Uttaranchal), and Guwahati (Assam). These state-of-the-art facilities collectively boast an annual production capacity exceeding 10 million meters.
Client Base:
The company serves a diverse range of clients, including major energy firms, public sector enterprises, and state electricity boards. Its notable customers include Tata Power, NTPC, NDPL, UPPCL, Reliance Energy, Torrent Power, and Power Grid Corporation of India Ltd., reflecting its strong industry presence.
Written By – Nikhil Naik
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