Genus Power Infrastructures Limited's stock experienced a rise of more than 4%, reaching a new 52-week high of Rs 196 in today's trading session. This surge followed the company's announcement of securing a significant new order through its wholly-owned subsidiary.
The company revealed that its subsidiary had been awarded a letter of award (LOA) for a project valued at Rs 2,209.84 crore (net of tax). This project involves being appointed as an Advanced Metering Infrastructure Service Provider (AMISP), which includes designing an AMI (Advanced Metering Infrastructure) system along with the supply, installation, and commissioning of 21.77 Lakhs Smart Prepaid Meters. The project will be executed under the DBFOOT (Design, Build, Finance, Own, Operate, and Transfer) basis as part of the Revamped Distribution Sector Scheme (RDSS).
Genus Power Infrastructures, a leading manufacturer of electric meters, anticipates a substantial increase in order volumes over the upcoming quarters of fiscal year 2024. This projection is based on the fact that multiple State Electricity Boards (SEBs) have initiated the process of inviting bids for the deployment of smart meters.
Jitendra Kumar Agarwal, the Joint Managing Director of Genus Power Infrastructures, expressed his perspective on this development. He noted that this new order marks the second significant order the company has secured recently, with the previous order amounting to Rs 2,208 crore (net of tax). Agarwal also emphasized that the implementation of the new metering scheme will contribute to a considerable expansion in the annual size of the industry. Additionally, it is expected to lead to improved operating margins for metering companies.
In summary, Genus Power Infrastructures' stock reached a new 52-week high following the announcement of a substantial order through its subsidiary. The company's positive outlook is supported by its expectations of increased order volumes due to the growing demand for smart meters within the energy sector.