24-05-2025
GE Vernova T&D India Ltd (BOM:522275) Q4 2025 Earnings Call Highlights: Record Order Intake ...
Order Intake: INR29.9 billion in Q4, up 124% year-on-year from INR13.3 billion.
Revenue (Q4): INR11.5 billion, up 26% year-on-year from INR9.1 billion.
Revenue (FY24-25): INR42.9 billion, up 35% year-on-year from INR41.7 billion.
Order Backlog: INR126.6 billion as of March '25, doubled from INR62.7 billion as of March '24.
Profit Before Tax (Q4): INR2.5 billion, compared to INR1.01 billion in the previous year.
Profit Before Tax (FY24-25): INR8 billion, up from INR2.6 billion in FY23-24.
Cash and Cash Equivalents: INR10.5 billion as of March 31, up from INR2.8 billion as of March 31, '24.
Cash Generated (Q4): INR1.9 billion.
Cash Generated (FY24-25): INR8.3 billion.
EBITDA (Q4): INR2.5 billion, representing 21.9% of revenue.
EBITDA (FY24-25): INR8.1 billion, representing 19.1% of revenue.
Warning! GuruFocus has detected 1 Warning Sign with BOM:522275.
Release Date: May 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
GE Vernova T&D India Ltd (BOM:522275) reported significant revenue growth, with Q4 revenue increasing by 26% year-on-year to INR11.5 billion.
The company achieved a substantial increase in order intake, with Q4 orders reaching INR29.9 billion, up by 124% year-on-year.
The order backlog doubled to INR126.6 billion as of March 2025, indicating strong future demand.
The company announced a strategic investment of INR400 million to enhance manufacturing capabilities for HVDC technologies, positioning it well for future growth.
GE Vernova T&D India Ltd (BOM:522275) maintained a strong cash position, with cash and cash equivalents at INR10.5 billion as of March 31, 2025.
The company faces challenges in the supply chain due to global demand and political uncertainties, which could impact operations.
There is a risk of pricing stability in the transformer market, with limited room for further price increases.
The company has a significant portion of its order backlog tied to long-term projects, which may delay revenue realization.
The company's focus on product orders over turnkey projects could limit its market opportunities in certain segments.
The company has not yet secured any STATCOM projects in India, despite the growing importance of this technology in renewable energy integration.
Q: How much of the existing backlog of INR127 billion is executable within the next 18 months? A: Approximately INR85 billion of the order backlog is executable within 1.5 to 2 years. The remaining INR30 billion consists of longer-term projects with execution timelines of three to five years. Additionally, there are orders that are received and executed within the same financial year.
Q: Could you share the timeline for new HVDC projects, especially for FY26? A: We expect at least one to two HVDC projects to be funded during this year. The transmission committee is reviewing projects, and we anticipate some approvals soon.
Q: What explains the strong gross margin performance, and is it sustainable? A: The strong gross margin of 42% in Q4 was due to better pricing, a strategic shift towards product orders, and increased export revenue. While quarterly margins can vary, we aim to sustain the annual gross margin of 40.4% achieved this year.
Q: Is the new factory for HVDC components necessary to participate in upcoming domestic opportunities? A: While not a requirement, the new factory will enhance our competitiveness and local presence, which is beneficial for meeting Make in India criteria and improving customer confidence.
Q: How do you see the overall Total Addressable Market (TAM) growing for non-HVDC high-voltage and export segments? A: We anticipate a 20% CAGR in the non-HVDC space, driven by government plans and global energy transition trends. The export market is also expanding, with opportunities in Europe, Southeast Asia, and Africa.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
