Genus Power Infra Q2 Results Review - Execution Improves; H2 FY23 Likely To Be Much Better: ICICI Securities
We believe the tide may turn over the next few months in terms of both order execution and margins.
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ICICI Securities Report
Genus Power Infrastructures Ltd.'s performance improved in Q2 FY23 due to better order execution. Revenue for the quarter was at Rs 2.2 billion (up 17% QoQ, 23% YoY) and Ebitda Rs 169 million (up 17.8% QoQ, 16.1% YoY).
However, Genus Power Infra's Ebitda margin was flat QoQ at 7.7%. Profit after tax at Rs 102 million was up 56% YoY and improved substantially QoQ (versus Rs 7 million in Q1 FY23).
We believe the tide may turn over the next few months in terms of both order execution and margins, mainly due to:
reduction in commodity costs,
supply-chain normalcy improving semiconductor availability thereby aiding higher capacity utilisation and operating leverage,
execution on better-margin orders, and
substantial increase in order-awarding.
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