Have you ever heard of a smart metering system? It’s a super-smart version of the electricity meter in your home. Instead of just sitting there, it’s constantly working to help you and your electricity company manage your energy better.

Imagine this: You’re at home, turning on lights, and maybe watching TV. While you’re doing all that, your smart meter is quietly keeping track of how much electricity you’re using, just like a helpful little assistant. 

But it doesn’t stop there. It can also send this information directly to your electricity company, so they know exactly how much electricity you’re using without having to come to your house and check the meter manually.

So, why is this important? Well, for starters, it means your bills are more accurate because they’re based on the exact amount of electricity you’re used. Plus, with real time updates on your energy usage, you can see where you might be using too much and find ways to save energy and money.

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

The stock performance has been nothing but extraordinary. The stock of the company has surged almost 250 percent over the past year. When looked at the period of three years, it gave a humongous return of 590 percent.

In this article, we’ll take a closer look at this company, explore their business segments, see how the management is aiming for tremendous growth going forward.

Corporate Overview Of Genus Power

Genus Power has been a pioneer in the power metering sector, producing smart meters for more than 25 years. With an extensive integrated facility covering 65,000 square meters, the company has successfully deployed over 75 million electricity meters. 

Its offerings cater to various sectors, including residential and commercial buildings, industrial facilities, and open access/grid networks. Additionally, Genus Power offers tailored Engineering, Construction, and Contracts (ECC) solutions to power transmission and distribution firms, delivering comprehensive services on a turnkey basis.

In terms of ECC projects, Genus Power has handled a wide array of tasks, including the construction of transmission lines, towers, substations, switchyards, and network upgrades for utility companies. This extensive experience has honed the company’s expertise, positioning it well for its upcoming endeavor: a large-scale Advanced Metering Infrastructure (AMI) project.

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

While primarily known for its electric smart meters, the company has expanded its portfolio to include the manufacturing of smart gas meters capable of accurately measuring LPG and Natural Gas volumes. This diversification underscores Genus Power’s commitment to innovation and meeting the evolving demands of the energy sector.

Business Segments Of Genus Power

Smart Energy Metering Solutions

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

This comprehensive range includes Smart Meters, Communication Infrastructure, Head-End Systems, Meter Data Management Systems, IT Infrastructure, Project Management services, Mobile Apps, and much more. 

Smart Gas Meter

Genus provides Smart Gas Metres to home consumers. According to reports, Genus is the first business in India to acquire a BIS licence for petrol metres.

Genus is exploring new opportunities to expand this vertical business field. The smart petrol metre market will undoubtedly grow rapidly due to its enormous potential and numerous opportunities, such as digitalization of distribution grids, optimisation of network operations, smart cities drive, digital India drive, impetus on advanced metering infrastructure, and growing investment in smart grid technologies.

Engineering, Constructions, and Contracts (ECC) for Power T&D Sector

Genus Power provides a complete, start-to-finish solution known as Engineering, Construction, and Contracts (ECC) to the Indian power distribution sector.

Within this framework, the company offers tailored solutions for power transmission and distribution utilities, incorporating state-of-the-art technology throughout the entire process, from conception to implementation.

This comprehensive approach is geared towards enhancing the overall profitability of utilities while ensuring that power supply operations are both safe and economically efficient.

Financials Of Genus Power

FY2023FY2022FY2021FY2020
Revenue (in ₹crore)8086856091060
Net Profit (in ₹crore)4573101117
ROE2.95%6.00%7.58%8.66%
ROCE6.78%9.76%13.05%16.39%

In the fiscal year 2023, Genus Power Infrastructure saw a substantial increase in revenue, surging by 18% to reach ₹808 crore as opposed to ₹685 crore in FY2022.

On the other hand, there was a downturn in net profit, experiencing a 38% decrease from ₹73 crore in FY2022 to ₹45 crore in FY2023.

The revenue was mainly from sales of metering solutions to the power utilities. However the persistent shortage of semiconductors and other electronic components has hindered profit growth and reduced capacity utilization in FY 2022-23.

In the fiscal year 2023, Genus Power Infrastructure sustained modest financial indicators, recording a Return on Equity (ROE) of 2.95% and a Return on Capital Employed (ROCE) of 6.78%.

Future Plans Of Genus Power

Growth Impetus from National Smart Metering Project

The Indian metering industry has faced numerous challenges in recent years. However, the introduction of the Revamped Distribution Sector Scheme (RDSS) is revolutionizing the landscape, leading to a substantial increase in the industry’s annual size. This shift is driving a transition from traditional meters to smart meters across the sector. 

The implementation of the new TOTEX model, operating under the Design Build Finance Own Operate and Transfer (DBFOOT) arrangement, further supports this transition.

Under the TOTEX model, System Integrators, also known as Advanced Metering Infrastructure Service Providers (AMISPs), assume responsibility for all capital expenditures, alleviating financial burdens on State Electricity Boards (SEBs). The Government of India (GoI) is spearheading the National Smart Metering Project as part of the RDSS, aiming to install 250 million meters by 2025, with an anticipated investment of US$30 billion.

This initiative is expected to drive significant order inflows, foster robust revenue growth, and greatly enhance the working capital cycle of the Indian metering industry in the years ahead.

Partnership with GIC

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

This collaboration marks the inception of a platform with an initial pipeline worth USD 2 billion. GIC will hold a majority stake of 74% in the platform, while Genus will contribute the remaining 26%.

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

Under this initiative, the Government of India aims to deploy 250 million smart meters by 2050, which could potentially reduce technical and commercial losses for utility companies by up to 15%.

Robust Order Book

Genus Power Infrastructures Limited is poised for strong growth in the coming years, driven by its robust order book that has surpassed Rs. 20,000 crores (net of taxes). The company has secured a series of prestigious orders for the installation of approximately 1.82 crore smart prepaid meters, aggregating to around Rs. 16,185 crores. 

With an execution cycle of 27 to 30 months for the current order book, the company has healthy visibility of its top-line growth, particularly for FY25 and FY26.

Moreover, the management anticipates a steady inflow of order volumes in FY25 as well, as numerous state electricity boards have commenced the bidding process to procure smart meters, underscoring the positive impact of the ‘Reforms-Based, Result-Linked Power Distribution Sector Scheme’.

The company’s impressive order book and the expected steady inflow of new orders provide a promising outlook for future revenue growth.

Conclusion

With a strong order book, strategic partnerships, and government initiatives driving the adoption of smart metering solutions, Genus Power Infrastructures Limited seems well-positioned for significant growth in the coming years. The company’s diversified offerings and extensive industry experience make it an attractive player in this rapidly evolving sector. 

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

Written by Nalin Suriya

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