Genus Overseas - Is Now Genus Power Infrastructures

Genus Reports 57% Increase In PAT

Genus Power Infrastructures Ltd(formerly Genus Overseas Ltd) has reported 57% increase in profit after tax for the quarter ending March to Rs 12.6 crore compared to Rs 8 crore in the corresponding period last year. Backed with a robust demand for power equipment makers, net sales for the electronic meter manufacturer rose 35.4% to touch Rs 152 crore during the quarter. For the full financial year, the company reported 84.3% increase in net profit to Rs 28.2 crore as against Rs 15.3 crore last year. Net sales posted a growth of 72% during the year and stood at Rs 365.16 crore.

The demand for meters is soaring on the back of the government's aim of providing power for all by 2012 as well as the focus on 100% metering and replacement of old mechanical meters with electronic energy meters (EEMs). Genus Overseas Electronics is a leading manufacturer of tamper-proof EEMs and to cater to the growing demand for EEMs, the company has expanded its manufacturing capacity by setting up a new plant for EEMs in the tax-free zone at Uttranchal.

The order book of the company stood at Rs403 crore (including export orders worth Rs15 crore) at the end of March 2007. The order flow is expected to remain robust as the government's mission of "Power to all by 2012" with the focus on 100% meeting and replacement of old mechanical meters with electronic energy meters fueling the growth. To cater to the growing need of electronic energy meters, the company has set up a new manufacturing plant in the tax-free zone at Uttranachal. The commercial production from the plant has started and is expected to contribute around Rs150 crore to the top line of the company on a full year basis.

To capture the huge growth opportunities in the overseas markets and also as a de-risking strategy, the company has entered into a 50:50 joint venture with Mobix Wireless Solutions Ltd, a leading Brazilian company in communications technology. The land for the plant has already been acquired and the orders for equipments have been placed.