Genus Power Infrastructure Ltd - Rs 200.00

Founded in 1994 Genus Power Infrastructure Ltd (GPIL) erstwhile Genus Overseas Electronic Ltd is amongst the leading integrated metering solutions' providers and the pioneer in implementing AMR (Automatic Meter Reader) technology. It manufactures wide range of high-end programmable multi-functional intelligent single phase & three phase electronic meters with in-built advanced security and anti-tamper features such as AMR enabled meters, trivector meters, panel meters, time of the day meters, audit meters, etc. But importantly, over the last few years GPIL has significantly transformed itself from only a meter manufacturer to an entrenched power infrastructure player. It now derives more than 50% revenue from EPC power T&D projects where it provides absolute solutions for power transmission & distribution system. As a step forward, GPIL has also launched IT enabled distribution transformer metering system, feeder monitoring and management system, smart street light management system with value added software application for providing end to end solutions for energy management. Catering to giants like Reliance Energy, Tata Power, BSNL, BEL, DRDO, ITI and several state electricity boards, GPIL currently operates in following four verticals.

· Metering Solutions: GPIL manufactures high end programmable, multi functional & intelligent single phase and three phase meters with in-built advanced security and anti tamper feature. It deals in all types of electronic meters such as residential meters, industrial meters, agricultural meter, substation meters, audit meters, grid meters, group meters, special meters (prepaid / rail mounted) etc. It specializes in providing AMR solutions for comprehensive billing using PLCC, RF, GSM and GPRS technologies which ensures drastic reduction in power pilferage, less AT&C losses, effective load management, improvement in quality of power supplied, customer satisfaction and maximization of revenue generation.

· Engineering Construction & Contracts: GPIL has vast technical expertise for commissioning new substations (design, engineer, supply, installation, erection, testing and commissioning sub-stations) or working out capacity augmentation, renovation and modernization of existing substations. Being an EPC contractor it also executes turnkey T&D projects like setting up transmission towers, execution of civil work, laying of cables, installation of transformers etc. Company also undertakes rural electrification projects, energy accounting and auditing at all distribution levels, comprehensive billing solutions for utilities etc. Apart from power sector, company also provides SCADA solutions for water suppliers and industrial automation.

· Power Backup Solutions: GPIL boast of successfully introducing most advanced Sure Sine Wave inverter technology in India. Its revolutionary ASIC technology customizes wave form needed by different appliances hence ensuring 100% of their safety. It makes several inverters in the range of 400 VA to 100 KVA and for high load electronic system, it provides home UPS, online UPS and high frequency & line interactive UPS in the range of 3 KVA to 100 KVA. Although on a small scale, GPIL has also forayed into renewable energy segment with products like solar panel, solar inverters and solar water heater. Getting itself backward integrated and to offer complete power backup solutions, it is contemplating to launch a full range of batteries (lead acid, tubular, SMF) under the “GENUS” brand name.

· Hybrid Microcircuits: GPIL manufactures superior hybrid microcircuits which are used in all electronic components and find vast application across all the industries. The bulky printed circuit boards are becoming outdated and are now aggressively getting replaced with miniature hybrid microcircuits. Company has advanced design software such as VISULA, OrCAD for design of hybrid microcircuits and PCBs.

GPIL perhaps has one of the biggest manufacturing units of energy meters and power electronics in the country with its two plants located at Jaipur (Rajasthan) and Haridwar (Uttranchal). With a production capacity of 2 million pieces, company has till now installed more than 10 million electronic meters globally. Of late, to integrate its EPC business company has set up a new facility at Alwar (Rajasthan) for manufacturing of poles, distribution transformers, etc. with an investment of Rs 50 cr. It also entered into two joint ventures in Brazil to manufacture electronic energy meters & provide state-of-art AMR technology. Meanwhile it continues to export its product to over 20 countries and is now focusing meter export to SAARC, Middle East, African and Latin American countries, where power reforms are taking place in a big way. Thus GPIL has become a global player with manufacturing facilities in India & Brazil, marketing offices in Singapore & USA and a full fledged sourcing office in China.

Presently, GPIL has an order book position of Rs 1100 cr which is almost twice its FY09 turnover. Besides it has participated in tenders of nearly Rs 1200 cr, out of which it is ´L1´ bidder in tenders worth Rs 89 cr only. Sarcastically, these figures are way lower than last year bidding of Rs 8000 cr and L1 bidder of Rs 650 cr. As per unconfirmed reports, due to some execution as well as payment problems, company has cut down the bidding process significantly. This comes on the back of the fact that company recently wrote off Rs 36 cr as various deduction made by its customers on earlier sales of multiple years. As company provided this extraordinary expense only in audited accounts, the NP plummeted to merely Rs 13 cr against Rs 51 cr as unaudited net profit. So according for FY09 it reported audited sales of Rs 556 cr and audited PAT (after extraordinary item) of Rs 13 cr leading to an EPS of Rs 8.50 on equity of Rs 14.80 cr. However for Q1FY10 it reported 20% growth in revenue to Rs 120 cr but bottomline remained flat at Rs 8.00 due to higher interest cost. Thus it is expected to clock a turnover of Rs 700 cr and PAT of Rs 50 cr for FY10 i.e. EPS of Rs 34 on current equity. As scrip doesn’t look very cheap at current EV of Rs 600 cr, investors are advised to buy at sharp declines for a price target of Rs 280 in 12~15 months.

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