Genus Power Infra - The Power Of ‘Two’: ICICI Securities

ICICI Securities Report

Genus Power Infrastructure Ltd. has entered into the big league by:

1. striking a marquee deal with GIC for an equity infusion of Rs 5.2 billion for 15% stake, and

2. setting up a platform – an special purpose vehicle (26% Genus and 74% GIC).

This will enable Genus to participate in smart meter bids – an opportunity size of Rs 300 billion. Genus’s share in equity contribution towards the platform stands at $210 million. It will be the exclusive supplier of smart meters to the SPV.

Note that bidding for smart meters is picking up – orders worth Rs 180 billion have been concluded while another Rs 780 billion are under bidding.

We also expect Genus to benefit from the easing semiconductor supply constraints and falling semiconductor prices.

We expect 74% revenue compound annual growth rate and six times profit growth through FY23-FY25E driven by strong order backlog and pick-up in execution.

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