GE Vernova T&D India (522275) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 order bookings surged 333% year-over-year to INR 46.8 billion, with H1 order bookings up 173% year-over-year to INR 57.1 billion, driven by large export and digital orders.

• Revenue for Q2 FY25 was INR 11.1 billion, a 59% increase year-over-year, and profit before tax rose to INR 1,938 million from INR 503 million.

• The order backlog reached an all-time high of INR 98.4 billion as of September 2024, up from INR 62.7 billion in March 2024.

• Export orders and digital solutions contributed significantly to growth, with export order share in H1 FY25 rising to 53% from 24% a year ago.

• Cash and cash equivalents stood at INR 6.8 billion as of September 2024, up from INR 2.8 billion in March 2024.

Financial highlights

• Q2 FY25 gross margin was 41.2%, up from 34% year-over-year, with EBITDA margin at 18.8% and profit after tax at INR 1,446 million.

• H1 FY25 revenue reached INR 20.7 billion, up 46% year-over-year, with gross margin at 40.8% and EBITDA margin at 19.5%.

• Cash generation in Q2 FY25 was INR 2,885 million, and INR 4,503 million in H1 FY25 before dividend payment.

• Export orders in Q2 FY25 were INR 24 billion, up from INR 2.5 billion in Q2 FY24.

• Net profit for Q2 FY25 was INR 1,446.2 million, up from INR 371.7 million in Q2 FY24.

Outlook and guidance

• Management expects a sustainable order inflow, with annual run-rate (excluding large one-off orders) projected at INR 55-58 billion, and total annual orders (including large deals) potentially reaching INR 78-82 billion.

• Margins are expected to remain strong, with export and automation orders providing further tailwinds, though no formal guidance was given.

• HVDC project outcomes are expected within the next three months, with each tender valued at $1-2 billion.

• Record order backlog positions the company for strong future revenue growth.

• Business activity continues to focus on electricity transmission and related activities, with no change in the line of business following the corporate name change.