Genus Power Infrastructures Ltd — Earnings Release 2020

Jan 22, 2020

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Earnings Release

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GENUS POWER INFRASTRUCTURES LIMITED

Delivers Robust Performance in Q3FY20

• Q3FY20 PAT stood at Rs. 26.9 Crore, up by 17% YoY

• EBITDA margin grew by 502 bps to 18.1% against 13.1% in Q3FY19

• Order Book at end of 31[st] December 2019 stood at Rs. 1,118.3 Crore (net of tax)

Jaipur – 22[nd ] January 2020 – Genus Power Infrastructures Ltd., a leading Metering solutions provider & manufacturer for the Power Distribution Industry, announced its unaudited financial results for the quarter and nine months ended December 31[st] , 2019.

Standalone Financial Snapshot Q3FY20:

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Earnings Release

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Standalone Financial Snapshot 9MFY20:

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Performance Highlights:

• 9MFY20 revenue stood at Rs. 812.1 crore against 9MFY19 revenue of Rs. 754.0 crore, up by 8% on YoY basis

• 9MFY20 EBITDA was up by 45% which stood at Rs. 131.6 crore against Rs. 90.7 crore of 9MFY19.

• Our EBITDA margin has increased by 418 bps to 16.2% against 9MFY19 margin of 12.0%. The margin has improved on account of higher share of export orders. Better Product mix has also aided the margin profile

• Profit After Tax was up by 43% at Rs. 71.3 crore for 9MFY20 against Rs. 49.8 crore in 9MFY19

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Earnings Release

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Key Business Updates:

• Order Book

  • Order inflow has remained subdued in 9MFY20, as we have been very conservative in selecting our clientele, with security of payment becoming a key focal point. We continue to witness, demand shifting from conventional meters to smart meters. Our order book stood at Rs. 1,118.3 crore (net of tax)

  • The smart meters are expected to play a significant role going forward on following grounds:

    • Automation of billing process leading in recovery of AT&C losses which are about Rs. 1 lakh crore p.a.

    • Theft of power becomes detectable and thus is difficult to carry out

    • Must for State Electricity Boards, if they want to secure funding from Central Government

  • A few states like Himachal Pradesh, Tamil Nadu and West Bengal etc. have started evaluating the process to procure and install smart meters

Commenting on the performance Mr. Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructure said,

“Order Book, Order Enquiries and Outlook for our business continues to remain very robust. Order inflow has remained subdued in 9MFY20, as we have been very conservative in selecting our clientele, with security of payment becoming a key focal point. We are witnessing a gradual shift from conventional meters to smart meters.

A lot of thrust is coming from the central government for deployment of smart meters across India in order to lower the AT&C losses, improve billing efficiencies, reduce DISCOMs’ financial woes, enhance consumer convenience and rationalize power consumption. State Electricity Boards are also propelled to take action in this direction, as improving billing efficiencies has become a necessary condition for receiving funding.

The Ministry of Power has given an outlay of Rs. 1.75 lakh crore for installation of 25 crore smart meters by March 2023, thus for the next 3-4 years, we foresee a lot of traction in our business. Going forward, we envisage the share of smart meters in total revenue to improve significantly, which shall also reflect in better margins. Government is in the process of drafting Standard Bidding Document (SBD) and outlining the terms and conditions for deployment of smart meters across India. Pre-qualification criteria is likely to become very stringent to facilitate the entry of only quality companies having robust execution track-record.

We provide end-to-end metering solutions to clients with metering communication, services and solutions. We plan to create inroads, in areas where we have robust avenues of earning recurring revenue in form of facility management system (FMS), providing our domain-related software to clients etc.”

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About Genus Power Infrastructure Ltd.:

Genus Power Infrastructures Ltd., started in 1995, is amongst the largest players in India’s electricity metering solutions industry, with ~27% market share. Company is market leader in various kinds of meters and has developed ‘smart metering solutions’, with in house R&D centre. Company also has engineering, construction, and contracts (ECC) division which complements the existing meters business. Company has manufacturing plants across Jaipur, Haridwar and Guwahati with a total installed capacity of over 10 million meters.

Our key customers include the major State electricity boards (SEB’s) and private utilities.

For more information about the Company and its businesses, please visit our website www.genuspower.com

Safe Harbor:

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For further details please contact:

Company	Investor Relations Advisors
Genus Power Infrastructures LtdCIN No: L51909UP1992PLC051997Ankit JhanjhariEmail id:cs@genus.in	Strategic Growth Advisors Pvt Ltd.CIN No: U74140MH2010PTC204285Shogun Jain / Parin NarichaniaEmail id:shogun.jain@sgapl.net/parin.n@sgapl.netTel No: +022 6114 6619/+022 6114 6681

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