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The stock has finished the last 10 of 12 months in the green, with January having the highest monthly gain of 35.5%, followed by February with a return of 34%.
GE T&D, the publicly traded arm of GE’s Grid Solutions division in India, boasts a rich history of over a century in the country, establishing itself as a key contender in the power transmission and distribution sector. Covering all aspects of the electricity supply chain, the company supplies a comprehensive set of products and services.
These offerings encompass power transformers, switches, gas-insulated switchgear, instrument transformers, substation automation equipment, digital software solutions, turnkey solutions for substation engineering and construction, flexible AC transmission systems (FACTS), high voltage DC (HVDC), and comprehensive. maintenance assistance
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Over the past few months, the company has successfully bagged several significant orders. In February, it reached contracts in total approximately ₹370 crore from the Power Grid Corporation of India for the provision of 765 kV shunt reactors, intended for various transmission system projects across India.
Moreover, in December of the previous year, the company secured an international contract valued at 74 million GBP from UK Grid Solutions Limited for the supply and manufacture of HVDC transformers.
On the financial front, the company reported a good set of numbers for the quarter ending December (Q3FY24).
It posted a profit after tax of ₹49 crore in Q3 compared to a PAT of ₹5 crore in the same period last year. Its income from operations during the December quarter jumped to ₹839 crore, 8% growth compared to revenue of ₹777 crore in Q3FY24.
The company has maintained a debt-free status with positive cash and cash equivalents. The cash generation during Q3FY24 was ₹168.7 crore, and during 9M FY24, it was ₹330 crores.
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Order intake for Q3FY24 achieved ₹2,370 crore, up 204% YoY from ₹780 crore in Q3FY23, while for 9M FY24, order intake reached ₹4,460 crore, up 139% YoY from ₹1,870 crore in 9M FY23.
At the end of the December quarter, the order backlog reached ₹5,850 crore, marking a remarkable 68% year-on-year increase. Private sector orders accounted for 72% of the company’s order book, with the remaining portion attributed to state utilities.
The Government of India is actively promoting hydrogen manufacturing through the National Hydrogen Mission and providing support through the Production-Linked Incentive (PLI) scheme.
However, to ensure the production of green hydrogen, a large amount of renewable power is needed. This will drive the construction of multi-gigawatt-scale renewable capacities and the establishment of many large-capacity central and state sector connectivity substations, creating promising market opportunities for GE T&D India.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 18 Mar 2024, 11:45 IST