GE T&D India Q1 Results Review - Healthy All-Round Beat; Demanding Valuations: Yes Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Our view GE T&D India Ltd. reported an excellent of numbers surpassing our estimates with revenue growth of 21% YoY. The company managed to clock in its highest Ebitda margin since FY19. Order inflows at Rs 10 billion grew by 68% YoY. As on Q1 FY24 order book stands at ~Rs 39.4 billion (1.4 times trailing twelve months revenue), robust ordering activity and a healthy tender pipeline led investment in power transmission infrastructure would support revenue growth going ahead. Looking forward We believe challenges in the form of rising commodity prices have largely eased and margin recovery would be contingent upon cost rationalization measures which has been witnessed in Q1 FY24 to an extent. We expect strong order pipeline, pickup in order inflows and execution ramp up, to benefit GE T&D India in the long run. Given the sharp run-up in the stock price, we believe the company is trading at demanding valuations of 81.9 times/44.2 times FY24E/25E earnings per share. Accordingly, we maintain our 'Sell' rating with a revised target price of Rs 160. Result Highlights Sales came in at ~Rs 7.2 billion (up 21% YoY) (our estimate: Rs 6.1 billion). Gross margins came in at 31.7%, ~280 bps YoY contraction.Ebitda grew by 127% YoY at Rs 508 million (our estimate: Rs 244 million) led by operating leverage benefits. Margins saw a ~330 bps YoY expansion at 7.1%.Profit after tax came in at Rs 282 million (our estimate: Rs 64 million) which was a 344% YoY growth on account of strong operational performance..Click on the attachment to read the full report:.Triveni Turbine Q1 Results Review - Outlook Continues To Remain Healthy: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

GE T&D India Q1 Results Review - Healthy All-Round Beat; Demanding Valuations: Yes Securities

We expect strong order pipeline, pickup in order inflows and execution ramp up, to benefit GE T&D India in the long run.

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