Genus Power Infrastructures Ltd's Order Book at Rs. 1,855 Crore as of 30th June 2022

The order book of Genus Power Infrastructures Ltd., a leading Metering solutions provider & manufacturer for the Power Distribution Industry was at Rs. 1,855 crore (net of tax) as of June 30, 2022.

In April 2022, the company received a letter of award (LOA) for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including design of AMI system with supply, installation and commissioning of about 10 Lakhs Smart Prepaid Meters, DT Meter level energy accounting and FMS of these smart meters from a state utility. The total order, worth Rs. 828.57 crore (net of tax), is the single largest order finalized by any state utility in India for AMISP.

Nearly all State Electricity Boards (SEBs) have issued requests and solicited bids for the installation of smart meters, indicating that the 'Reforms-Based, Result-Linked Power Distribution Sector Scheme' is having a tangible effect.

The company anticipates robust order inflow in coming quarters of FY23.

Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures said, "With the implementation of the Revamped Distribution Sector Scheme (RDSS), we anticipate that the entire landscape of the Indian metering industry will undergo a radical transformation, resulting in a projected multifold increase in annual industry size. This will also result in a transition from conventional to smart meters in the Indian metering industry, allowing for better operating margins.

In the new TOTEX (CAPEX + OPEX) model under the Design Build Finance Own Operate and Transfer (DBFOOT) arrangement, system integrators (also known as Advanced Metering Infrastructure Service Providers, or simply AMISPs) will be responsible for all capital expenditures, relieving SEBs of any financial burden. Starting in FY23, the Indian metering industry will see strong order inflows, healthy topline growth, higher operating margins, and an improved working capital cycle.

Smart Meters are a value-added product that are three to four times more expensive than conventional meters. In addition, they come with a variety of after-sales services. As a result, we anticipate a substantial increase in revenue from smart meters, which typically have higher operating margins. All of this will alter the economic dynamics of the Indian smart metering industry in the coming years.

SEBs are becoming increasingly convinced of the TOTEX model, whereby they will incur no capital expenditures for smart meters and will instead make monthly payments (which are guaranteed) to AMISPs under the 'pay-as-you-save model'. We as a company will play dual roles of being AMISP (as per our limited appetite) as well as being smart metering vendors (a.k.a. technology providers) to other AMISPs. The TOTEX model will result in increased cash flow for SEBs, which will significantly reduce the current working capital cycle. The payment for meters supplied to other AMISPs will be on LC basis. In addition, because AMISPs will be responsible for a significant portion of the capex, the quality and timely delivery of smart meters will be crucial factors to consider when placing orders with metering companies, as opposed to simply selecting the lowest bidder.

We are confident of meeting the highest industry standards because we are a fully vertically integrated company with backward integration and forward integration from the conceptual designing of the product to final packaging - wherein we build everything in-house from conceptualization, design, tools room, moulding machines, assembly lines, and test labs. This is our most important USP because it enables us to customise products to meet the specific needs of our clients in a timely and cost-effective manner, making us a one-stop shop for all their metering requirements. We have developed our service capabilities concurrently with our technological capabilities, as we offer end-to-end service solutions such as meter installation, meter maintenance, data analytics, and MDM solutions, etc. This provides us with a significant competitive edge over our rivals.

We have been in the electricity metering business for over two decades, and we currently hold the highest market share of roughly 27% in India. On the foundation of our inherent strengths, we hope to recreate our leadership position in smart metering business. As the largest player in the Indian metering sector, we are well positioned to benefit from the multi-fold increase in the industry's size."

Shares of Genus Power Infrastructures Limited was last trading in BSE at Rs. 77.50 as compared to the previous close of Rs. 78.00. The total number of shares traded during the day was 44875 in over 1022 trades.

The stock hit an intraday high of Rs. 79.25 and intraday low of 76.80. The net turnover during the day was Rs. 3495645.00.

Source : Election Commission of India

Keywords

GenusPowerInfrastructures INE955D01029 OrderBook MeteringSolutions SmartMeters