With multifold gains, is GE Vernova T&D stock running ahead of its earnings?
Subscribe to enjoy similar stories. The stock of power transmission and distribution company GE Vernova T&D India Ltd is on fire. Soaring to a new 52-week high of ₹2,180 on Friday, the calendar year-to-date returns are now at a massive 330%.
On Thursday, the company bagged an order worth over ₹400 crore from Sterlite Grid 32 Ltd. for the supply and supervision of high-voltage equipment for a tariff-based competitive-bidding project. Earlier this month, it also secured an order worth around ₹400 crore from Sterlite Power for the supply of power transformers and reactors.
The company will supply and supervise 765-kilovolt power transformers and reactors for Khavda. Inflow of new orders is favourable as it aids ordering momentum and boosts the firm's revenue visibility. Also, its parent company is outsourcing a part of the job to Indian entity.
In the September quarter (Q2FY25), it received nearly ₹2,500 crore of orders from its parent, almost tenfold increase on year-on-year basis. As a result, total order inflow during the quarter rose to ₹4,700 crore, more than three times the average orders received over the previous four quarters. The commentary is upbeat.
The company expects about ₹6,000 crore of annual order inflow, excluding the large HVDC projects. Order backlog for the company stood at nearly ₹10,000 crore at the end of Q2, up 57% over end-FY24 and 2.6x trailing twelve months' revenue. Export orders are margin accretive with better profitability for several product lines, management said during the earnings call.
Exports now account for 40% of orderbook, up from 20% a year ago. While these large projects are currently under the process of bidding, they remain prone to delays. Impressive performance in Q2FY25 with
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