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Published: September 2, 2023
Updated: September 2, 2023

Genus Power Seizes Rs 2,247 Crore Order Surge, Riding High on Smart Metering Demand

Genus Power, a leading player in India's electricity metering solutions industry, has locked in a 5% upper circuit on the stock exchange, driven by a significant win in contract orders valued at Rs 2,247.4 crore. This remarkable achievement has elevated the company's total order book to approximately Rs 11,000 crore. In this article, we delve into the details of this substantial contract and the promising landscape of the advanced metering infrastructure sector.

Record-Breaking Stock Performance:

The fervor around Genus Power is palpable as its stock reached a record high of Rs 277 on August 29. Over the past month, the stock has surged by an impressive 50%, a stark contrast to the 2.1% decline in the S&P BSE Sensex. Intra-day trading witnessed the stock touching the 5% upper circuit at Rs 271.6, reflecting the market's bullish sentiment. Trading volumes remained robust, with a substantial 156,000 shares changing hands, and pending buy orders for approximately 2 million shares on both the NSE and BSE.

Landing the Game-Changing Contract:

Genus Power attributes its success to its step-down wholly owned subsidiary, which clinched the monumental Letter of Award (LOA) worth Rs 2,247.4 crore. This contract pertains to the appointment of Advanced Metering Infrastructure Service Providers (AMISPs). The scope of work includes designing an Advanced Metering Infrastructure (AMI) system, along with supply, installation, commissioning, and Facility Management Services (FMS) for 24.18 lakh Smart Prepaid Meters. Additionally, it encompasses system meters, including OT Meters, with corresponding energy accounting under the DBFOOT model (HYBRID Model, CAPEX Plus OPEX).

Riding the Wave of Smart Meter Demand:

The company's strategic move to focus on the rapidly growing demand for smart meters in India has proven prescient. State Electricity Boards (SEBs) across the country have initiated the bidding process to procure smart meters, in line with the 'Reforms-Based, Result-Linked Power Distribution Sector Scheme.' Genus Power anticipates a robust surge in order volumes in the upcoming quarters of fiscal year 2024, fueled by the nation's commitment to enhancing power sector efficiency.

Government Initiatives and Market Leadership:

India's government, under the Revamped Distribution Sector Scheme (RDSS), has set an ambitious goal to install 250 million smart meters in households nationwide. Genus Power, with its substantial 27% market share, stands as a key player in fulfilling this objective. The company boasts market leadership across various types of meters and has also developed innovative 'smart metering solutions' through its in-house Research and Development (R&D) center. Furthermore, the company's Engineering, Construction, and Contracts (ECC) division complements its existing meters business.

Genus Power's monumental contract win and its strategic positioning within the thriving smart metering sector reflect a bright future for the company. With an ever-increasing demand for smart meters and substantial government initiatives backing the sector's growth, Genus Power is poised for sustained success in the coming years.