GE Vernova T&D India (522275) Q1 24/25 earnings summary

Executive summary

• Q1 bookings reached INR 10.3 billion, up 2% year-over-year, with a record order backlog of INR 62.8 billion, up 59% year-over-year as of June 2024.

• Q1 revenue rose 34% year-over-year to INR 9.6 billion, with significant profit improvement and strong cash generation of INR 1.6 billion.

• Profit before tax for Q1 was INR 1.8 billion, up from INR 386 million in the prior year quarter.

• Net profit for the quarter was INR 1.35 billion, compared to INR 282 million in the prior year quarter.

• Focused on operational efficiency, selective market participation, and lean processes to drive higher margins and reduce risk exposure.

Financial highlights

• EBITDA for Q1 was INR 1.94 billion (20.2% of revenue), up from 8.7% last year.

• Gross margin improved to 40.3% in Q1 from 32% in the same quarter last year.

• Profit after tax for Q1 was INR 1.35 billion (14.0% of revenue), up from INR 282 million (3.9%) year-over-year.

• Cash and cash equivalents stood at INR 4.4 billion as of June 2024, with cash generation of INR 1.6 billion during the quarter.

• Basic and diluted EPS for the quarter was INR 5.25, compared to INR 1.10 in the same quarter last year.

Outlook and guidance

• Management aims to further improve gross margins and profitability, driven by better pricing, product mix, and operational improvements.

• Order pipeline remains strong, with INR 13 billion in orders already booked in July, including significant export and Power Grid orders.

• Sustained demand expected from both domestic and export markets, with capacity utilization improving and potential for further expansion.