GE T&D India Q3 Results Review - Healthy Margin Expansion: Yes Securities

Yes Securities Report

GE T&D India Ltd. reported a mixed set of numbers with revenues missing our estimates at Rs 7.8 billion (down 15% YoY) however Ebitda saw a healthy 54% YoY growth at Rs 458 million. Adjusted profit after tax came in at Rs 59 million which is the third consecutive quarter in the green.

Order inflows in Q3 FY23 at Rs 7.8 billion grew by 53% YoY. As on Q3 FY23 order book stands at ~Rs 34.8 billion (1.3 times trailing twelve months revenue), providing revenue visibility for ~18 months.

Going forward management expects strong traction with healthy ordering pipeline in renewable and tarriff based competitive bidding segments and is confident of capitalising on opportunities presented by the 2023 Union Budget.

We believe challenges in the form of rising commodity prices have largely eased and margin recovery would be contingent upon cost rationalisation measures. However, we expect-

1. strong order pipeline,

2. pickup in order inflows and

3. execution ramp up, to benefit GE T&D in the long run and expect it to report revenue compound annual growth rate of 5% from FY22‐FY25E.

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