GE Vernova T&D India Reports Strong Q2 Results, Announces INR 8 Billion Capacity Expansion

GE Vernova T&D India Limited , a key player in the power transmission and distribution sector, has reported robust financial results for the second quarter, along with plans for significant capacity expansion.

Strong Financial Performance

The company delivered impressive quarterly results, with revenue soaring to INR 15.40 billion, marking a substantial 39% year-over-year growth from INR 11.10 billion in the same quarter last year. This growth was driven by strong execution across both domestic and export markets.

GE Vernova T&D India also reported a notable improvement in profitability:

Metric	Q2 Current	Q2 Previous	YoY Change
Revenue (INR billion)	15.40	11.10	+39%
EBITDA Margin	25.80%	18.80%	+700 bps
Profit Before Tax (INR billion)	4.00	1.90	+110%

The company's EBITDA margin expanded significantly to 25.80%, representing a 700 basis point improvement over the previous year. This margin expansion was attributed to increased volume, improved pricing, and productivity gains.

Order Book and Cash Position

While new order bookings for the quarter stood at INR 16.10 billion, down from INR 46.80 billion in the previous year's quarter, the company maintains a healthy order backlog of INR 131.10 billion. This robust backlog provides strong visibility for future revenue growth.

The company's financial position remains strong, with cash and cash equivalents increasing to INR 15.20 billion, up from INR 12.20 billion at the end of the previous quarter.

Capacity Expansion Plans

In a significant move, GE Vernova T&D India announced additional capital expenditure of INR 8 billion, focusing on advanced grid technologies. This investment will:

Expand capacities at Vadodara for transformers and reactors
Install new lines for bushings and air core reactors at Hosur
Enhance capacities for AIS and GIS products at Hosur and Padappai

This expansion is aimed at supporting both domestic and export markets, positioning the company to capitalize on the growing demand in the power transmission sector.

Market Outlook

The management expressed optimism about future demand, driven by India's energy transition goals. These include:

Target of 500 GW of non-fossil fuel capacity
Significant HVDC opportunities
36 GW of planned pumped storage projects
Growing data center market

Sandeep Zanzaria, CEO and MD, commented, "The outlook for the transmission segment remains highly positive, alongside strong prospects for the generation sector. We expect peak power demand to climb by close to 80% by 2032, necessitating an unprecedented expansion of the grid."

Conclusion

GE Vernova T&D India's strong quarterly performance, coupled with its strategic capacity expansion plans, positions the company well to capitalize on the growing opportunities in the power transmission and distribution sector. The company's focus on advanced technologies and its robust order backlog suggest a positive outlook for sustained growth in the coming years.

Investors and industry observers will be keenly watching how the company leverages its expanded capacities and navigates the evolving energy landscape in India and export markets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.78%	-1.23%	+1.85%	+71.45%	+71.82%	+68.32%

GE Vernova T&D India Limited , a key player in the power transmission and distribution sector, has announced ambitious revenue targets for the fiscal year 2025 (FY25) alongside its robust second-quarter results for the fiscal year 2024-25.

FY25 Revenue Target

The company has set its sights on achieving a revenue of INR 5,500-6,000 crore for FY25. This target represents a significant growth from the previous year, underlining the company's expansion plans in the power sector.

Margin Expectations

GE Vernova T&D India aims to maintain healthy profit margins:

Overall margins targeted to remain above 20%
EBITDA margins expected in the mid-20s range for FY25

The company's focus is on driving absolute EBITDA growth through increased volumes, indicating a strategy of scale-driven profitability.

Q2 FY 2024-25 Financial Highlights

The company has reported strong financial results for the second quarter:

Metric	Q2 FY 2024-25	Q2 FY 2023-24	YoY Growth
Revenue from Operations	INR 15,384.60 crore	INR 11,077.70 crore	38.9%
Net Profit	INR 2,994.80 crore	INR 1,446.20 crore	107.1%
EBITDA Margin	25.8%	18.5%	730 bps

The substantial year-on-year growth in revenue and profitability showcases the company's strong market position and operational efficiency.

Order Book and Market Position

While the company reported robust financial performance, there was a notable decline in order bookings:

Q2 FY 2024-25 order bookings: INR 16.10 billion
Q2 FY 2023-24 order bookings: INR 46.80 billion
Year-on-year decline: 66%

Despite this, GE Vernova T&D India secured several significant orders, including:

765 kV, 400 kV, and 220 kV GIS substations from a private TBCB player in Gujarat
400/220kV AIS Substation from a private renewable developer in Karnataka
765 kV GIS substation from a private EPC player in Maharashtra
Multiple orders for AIS/GIS equipment exports to Europe, North America, Middle East, and Africa

Expansion Plans

The Board of Directors has approved a significant investment of INR 806 crore towards expanding existing facilities:

Increase in capacity for Transformers & Reactors at Vadodara facility by more than 50%
Up to 25% capacity increase for GIS & AIS products at Padappai and Hosur locations
Establishment of new manufacturing lines for Air Core Reactors and Bushing at Hosur

This expansion is slated for completion over three years, from 2026 to 2028, and will be funded through internal accruals.

Management Commentary

Sandeep Zanzaria, Managing Director & CEO of GE Vernova T&D India Limited, stated, "Our results were fueled by the accelerating pace of India's grid modernization, which is essential for bolstering reliability, integrating vast renewable capacity, and meeting the nation's rising power requirements. Importantly, we have maintained a disciplined focus on margin-accretive orders, a strategy we are committed to pursuing for long term."

He added, "Our investment plans to improve capacity will ensure our manufacturing facilities are ready to support India's energy transition and grid modernization, while positioning the company for long-term stability and success."

The company's strong financial performance, coupled with its expansion plans, positions GE Vernova T&D India as a key player in India's evolving power sector landscape. As the nation continues its push towards grid modernization and renewable energy integration, the company appears well-positioned to capitalize on these opportunities.