Genus Power Infra zooms 15% on order win worth Rs 2,207 crore

The company said it has received a letter of award (LoA) of Rs 2,207.53 crore for appointment of Advanced Metering Infrastructure Service Provider (AMISP)

Shares of Genus Power Infrastructure hit a new high of Rs 149.65 as they zoomed 15 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes after the company won order worth over Rs 2,000 crore. In the past two months, the market price of the company has rallied 68 per cent.

At 10:41 am, the stock was quoting 10 per cent higher at Rs 142.80 as compared to 0.15 per cent rise in the S&P BSE Sensex.  Average trading volumes on the counter jumped over three-fold today with a combined 7.6 million shares having changed hands on the NSE and BSE.

Genus Power said that it has received a letter of award (LoA) of Rs 2,207.53 crore for appointment of Advanced Metering Infrastructure Service Provider (AMISP) including design of AMI system with supply, installation and commissioning of 2.77 million Smart Prepaid Meters, Feeder Meter, DT Meter level energy accounting and FMS of these 2.77 million smart meters.

Genus Power Infrastructures is amongst the largest players in India's electricity metering solutions industry with around 27 per cent market share.

The company said it foresees a strong influx of orders in the upcoming quarters of FY24. Many 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 management said this order win provides added visibility to the company’s revenues for coming years. The management anticipates a sharp revenue rebound in coming quarters on account of robust orderbook and healthy order inflow, and restoration of normalcy in the supply chain.

The implementation of the Revamped Distribution Sector Scheme (RDSS) is expected to have a radical impact on the Indian metering industry. The scheme will lead to a multifold increase in the annual size of the industry, as well as a transition from conventional to smart meters. This will allow for better operating margins for metering companies, the management said.