GE Vernova T&D India Reports Strong Q1 Results, Cautions on Future Margins
By ScanX News Team
GE Vernova T&D India Limited announced impressive Q1 results with 39% YoY revenue growth to ₹13,301.30 crore and 117% increase in Profit After Tax to ₹2,912 crore. EBITDA margin improved to 29.10% from 19.00% in the previous year. Order bookings rose by 57% to ₹16,200 crore. Despite strong performance, the company cautioned stakeholders not to consider Q1 margins as the new standard. GE Vernova T&D targets a 19% EBITDA margin by FY25. The company secured significant orders for transformers, reactors, and GIS equipment across India and internationally. Management emphasized disciplined approach to profitable orders and focus on cash flow generation.
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GE Vernova T&D India Limited has reported robust financial results for the first quarter, while simultaneously cautioning stakeholders about future margin expectations.
Strong Q1 Performance
The company announced impressive year-on-year growth in its Q1 results:
| Metric | Q1 Current | Q1 Previous | YoY Change |
|---|---|---|---|
| Revenue | ₹13,301.30 | ₹9,583.40 | +39.00% |
| EBITDA | ₹3,876.00 | ₹1,822.00 | +113.00% |
| EBITDA Margin | 29.10% | 19.00% | +10.10 pp |
| Profit After Tax | ₹2,912.00 | ₹1,345.00 | +117.00% |
| PAT Margin | 21.90% | 14.00% | +7.90 pp |
| Order Bookings | ₹16,200.00 | ₹10,300.00 | +57.00% |
Caution on Future Margins
Despite the strong Q1 performance, GE Vernova T&D has warned stakeholders not to consider the high Q1 margins as a new standard for future performance. This cautionary stance suggests that the company expects performance to normalize in the coming quarters.
Long-Term Margin Target
While tempering short-term expectations, the company has set a longer-term goal for margin improvement. GE Vernova T&D is targeting a 19% EBITDA margin by FY25, indicating a strategic focus on sustainable profitability growth.
Key Wins and Operational Highlights
The company secured several significant orders in Q1, including:
- Multiple orders for 765 kV transformers and reactors in Rajasthan and Gujarat
- An order for 420 kV GIS from Bharat Heavy Electricals Ltd in Madhya Pradesh
- An order for 420/245 kV GIS from a private EPC player in Maharashtra
- Multiple orders for 765 kV AIS equipment and grid automation packages
- Export orders for AIS/GIS equipment to Europe, South-East Asia, Middle East, and Africa
Operationally, GE Vernova T&D successfully commissioned several projects, including:
- 765 kV AIS and 400 kV GIS bay for PGCIL in Kotra
- 765 kV GIS bays and 1500 MVA ICT for Adani at Khavda
- Approximately 2,700 MVA capacity across various sites in India
Management Commentary
Sandeep Zanzaria, Managing Director & CEO of GE Vernova T&D India Limited, commented on the results: "We delivered a strong and productive first quarter, driven by continued momentum as India modernizes its grid to improve reliability, accommodate renewable energy sources, and meet increasing electricity demands from various sectors. We have been disciplined in taking profitable orders with better margins and expect to continue on this trajectory."
The company's focus on profitable growth and cash flow generation is evident in Zanzaria's statement: "To ensure we maximize long-term shareholder value, the company consolidated its position on free cash flow."
As GE Vernova T&D India continues to navigate the dynamic energy sector, investors and stakeholders will be closely watching how the company balances its strong current performance with its cautious outlook on future margins.
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