291 Per cent Jump in Q2 Profit, Operating Margins Double – Stellar Quarterly Results Posted by Power Transmission and Distribution Company – Stock Hits Upper Circuit Today

291 Per cent Jump in Q2 Profit, Operating Margins Double – Stellar Quarterly Results Posted by Power Transmission and Distribution Company – Stock Hits Upper Circuit Today

Rakesh Deshmukh

Heavy buying from FIIs, they have continuously increased their stake for 6 consecutive quarters without any gaps.

GE Vernova T&D India Ltd is a Small-Cap listed entity of GE’s Grid Solutions business in India. It has been in the power transmission and distribution business for more than 100 years and provides a versatile range of solutions for connecting power generation sources to the grid and evacuating power from them. Today, the company’s shares have rallied and hit the upper circuit in the morning session after announcing a stellar quarterly performance.

As per Quarterly ResultsGE Vernova T&D India Ltd in Sep 2024 reported a revenue of Rs 1108 crore compared to Rs 698 crore representing a growth of around 59 per cent YoY. The company posted an operating profit of Rs 205 crore with a margin of around 18 per cent compared to Rs 61 crore with a margin of 9 per cent. In the current quarter, both the operating profit and margins both have expanded and even the margins doubled. The company’s net profit stood at Rs 145 crore for the period compared to a profit of Rs 37 crore same quarter last year representing a growth of around 291 per cent. This could be the potential trigger for the price rally.

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Looking at the annual performance, the company generated a revenue of Rs 3168 crore in FY24 compared to Rs 2773 crore in FY23 representing a growth of 14.23 per cent YoY. The operating profit for FY24 was Rs 332 crore compared to Rs 121 crore in FY23. The company reported a net profit of Rs 181 crore compared to a loss of Rs 1 crore.

FIIs and DIIs collectively bought around 15.43 per cent in the September quarter of FY25. Move over, Heavy buying from FIIs, they have continuously increased their stake for 6 consecutive quarters without any gaps. As per the shareholding pattern, the promoter owns 59.38 per cent, FIIs increased their stake from 2.04 per cent to 6.82 per cent, while DIIs hold 25.61 per cent, and public investors hold 8.19 per cent.

Currently, the shares of GE Vernova T&D India Ltd shares are at Rs 1775 per share. The company’s current market capitalization stands at Rs 45,444 crore. The stock has delivered a multibagger return of over 350 per cent in just 1 year.

Disclaimer: The article is for informational purposes only and not investment advice.

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