The shares of the leading player in the power transmission company gained up to 4 percent after the company bagged a prestigious work order from the Power Grid Corporation of India Limited for Rs 500 crore.
Price movement
With a market capitalization of Rs 35,653.20 crore, the shares of GE Vernova T&D India Ltd were trading at Rs 1,392.45 per share, increasing around 2.39 percent as compared to the previous closing price of Rs 1,360.00 apiece.
Reason for Rise
The shares of GE Vernova T&D India Ltd have seen bullish movement after bagging a prestigious work order from the Power Grid Corporation of India Limited worth Rs 500 crore for the Supply and Installation of Transformers and Reactors under bulk procurement.
Financial analysis
Recently, the company reported positive results in Q3FY25, revenue decreased by 3 percent on a quarter-on-quarter basis from Rs. 1,108 crore in Q2FY25 to Rs. 1,074 crore in Q3FY25. Further, revenue zoomed by 28 percent year on year, from Rs 839 crore in Q3FY24 to Rs 1,074 crore in Q3FY25.
The company’s net profit decreased by 1 percent on a quarter-on-quarter basis, from Rs. 145 crore in Q2FY25 to Rs. 143 crore in Q3FY25. Further, net profit magnified significantly by 191 percent year on year from Rs 49 crore in Q3FY24 to Rs. 143 crore in Q3FY25.
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Industry trend
The power sector’s investment super cycle is accelerating, driven by the need for modernized grid components and reliability. India is emerging as a key player in advancing grid infrastructure, with a strong focus on cybersecurity to safeguard against potential vulnerabilities.
Quarterly Performance Highlights
In Q3 FY 2024-25, order bookings fell 12 percent YoY to Rs 20.8 billion due to the absence of a large transformer order. However, the order backlog surged 72 percent to a record Rs 107.8 billion from Rs 62.7 billion in March 2024, ensuring strong future revenue visibility.
Operational highlights
The company successfully commissioned key projects, including Reliance Jamnagar Phase 1 new energy complex, a 400 kV GIS project with Adani in Khavda, a 400 kV AIS switchyard at Lohardaga for Power Grid, and a 400 kV GIS project at Dhalkebar for Nepal-India hydropower transmission.
Future Outlook
The company is evaluating capacity expansion opportunities, including potential brownfield expansions at existing sites. It plans a capex of approximately Rs 800 million for FY 2025-26, with flexibility for further investments based on market conditions.
New Developments
The company actively participates in the Rs 3,000- Rs 3,500 crore STATCOM market while expanding export opportunities. It aims to maintain a balanced domestic and export order book, ensuring sustained growth and market diversification.
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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