I take pride in presenting the twenty sixth (26th) Annual Report of yourcompany. Having achieved remarkable growth over the last two decades and contributingsignificantly to the development of power sector of the country I am pleased that thecompany has delivered another year of good performance particularly in the light ofchallenges of rising raw material prices and shortages.
During the year under review we have witnessed improved business performance onaccount of a good traction of domestic orders led by the increased trust of Central /State governments on smart metering. The consolidated net revenue stood at Rs.835.05crores for FY18 as against Rs.642.37 crores in FY17 up by 30%. The consolidated netprofit stood at Rs.84.52 crores for FY18 as against Rs.64.51 crores in FY17 up by 31%.The total order book position as at March 31 2018 stood at Rs.1096 crores (net of tax).Our book value per share has grown year on year and stood at Rs.29 as at March 312018.
Considering the strong performance of the company and in line with the company'sdividend policy the Board of Directors has recommended a dividend of 41% (i.e. Re.0.41per equity share of FV of Re.l each) for FY18. This is subject to approval by theshareholders at the ensuing annual general meeting.
Genus remains a healthy organisation positioned as the leading provider of meteringsolutions and turnkey solutions of engineering construction & contracts for powerdistribution sector. Genus has attained prominence as a leader in the field of energymetering through its technological competence price competitiveness and timely deliverywith utmost quality.
Since beginning Genus has been dedicated to the idea that self-dependence intechnologies through in-house research and development is the backbone of sustainablegrowth and success. Genus incessantly strives for innovation and improved efficiencythrough its in-house research 8i development centre (recognized by the Ministry of Science& Technology Government of India and accredited by National Accreditation Body forTesting Labs ('NABL')) highest quality accreditations and ultra-modern manufacturingfacilities & techniques with complete forward & backward setup. These allow us toserve our esteemed customers with the fastest and most customised solution at acompetitive price. With increasing need for innovation we have incurred around 28 percentof our earning on R8tD during the FY18.
Iam happy to share that Genus continues to be the preferred choice of most stateelectricity boards and private power utilities in India. With the installation base ofover 48 million energy meters across the globe Genus is constantly helping the powerutilities/DISCOMs in curtailing its AT8iC losses and improving technological competence.
Genus has entered into smart grid arena in a big way by participating in many of theSmart Grid pilot projects either directly or indirectly as OEM supplier of smart meteringsolutions. This has made Genus as a leading supplier of Smart meters / solutions.
Further Genus has upgraded its prepaid meter into smart prepaid meter by includingcommunication capability in it. India aims to achieve 100 percent energy metering of allhouseholds in the country and Government of India intends to replace all electricitymeters with smart prepaid meter. The company is best placed to capture any opportunitythat market presents with the help of its long-standing industry experience and expertisein providing smart prepaid metering solution across India and the globe.
You would be glad to know that we have enhanced our capabilities in undertaking andmanaging turnkey metering projects. The reason being the expectations of utilities havenow gone up from simply buying meters to get end to end solution from players like Genus.The meter supplies are now getting converted to metering projects that includes besidesthe supplies survey of generation / feeder points consumer indexing installationcommissioning supply of other associated materials such as transformers cables etcensuring data communication establishing data centres getting data at the main centre asper agreed SLAs and facility management services as applicable. The scope of work differsfrom project to project. Genus has in hand 22 such projects currently running at differentstages and this is giving a new dimension to our business. Obviously this new acquiredexpertise is going to put your company in the lead among others and help it take longerstrides going forward.
Export market has also been an area of our focus and we have been following it upaggressively in some of the untapped developing markets. We continue to make newpartnership/relationship to gain a strong foothold in overseas market. This is helping usto provide access to the overseas distribution companies and opens doors for capitalizingon large opportunities in the untapped developing markets by offering customised meteringsolutions suiting local requirements. We are happy to share that your company made a majorbreakthrough in exports and got an order for the supply of 100000 single phase smartmeters with plug in communication from a prestigious overseas utility Singapore PowerAssets Limited. Singapore Power Group is a leading energy utility group in the AsiaPacific. It owns and operates electricity & gas transmission and distributionbusinesses in Singapore and partly in other countries. Company expects this order to be ashowcase for other similar smart meter opportunities being rolled out in nearby South EastAsian countries. We believe in the coming years exports would be significant contributorto our business.
Your company also made significant progress in the design and development of Diaphragmbased Smart gas meter "Pravaah" for measuring accurately volumes of natural gasand LPG (Liquid Petroleum Gas) supplied through pipelines for residential users in highrise buildings societies and commercial organisations. Further Genus Gas meters are beingmade AMR Compliant with connect/disconnect feature. Given the importance being given toCity Gas Distribution (CGD) development by the government and industry players in generaland under Smart City Initiatives we see a big market with hardly any local player ofrepute for these Gas meters in the coming days.
With the government's earnest efforts on revival of the power transmission &distribution sector through its various programs and policies such as UDAY SchemeIntegrated Power Development Scheme Deen Dayal Upadhyaya Gram Jyoti Yojana Make inIndia Digital India National Smart Grid Mission Smart Cities Housing for All Powerfor All Solar Net Metering and higher budgetary allocations we are confident ofcontinuing on our growth path in the near future.
As we look to the years ahead we at Genus reiterate its pledge to remain committed totechnological excellence keep abreast of changes & innovations adopt bettermanagement & operational techniques and successfully overcome all challenges lyingbefore us.
I always believe that building and maintaining good relationship at workplace is thekey to success in any business. Engaging satisfied employees always offer more creativitywhich in turn brings innovation. I extend my most sincere appreciation and gratitude toour board members and employees at all levels for their hard work and passion in keepingour goal to make Genus successful and most importantly for creating a harmoniousatmosphere at workplaces. It is my privilege to serve as Chairman of this organization andlook forward to continued healthy relationships with everyone in the workplace and takethe company to the newer heights of success in the years ahead.
Finally on behalf of the Board and all at Genus I must thank all valued members forcontinued support & encouragement and lookforward for continued association in yearsto come.
ISHWAIT CHAND AGARWAL
August 10 2018