GE Power India Limited — Important, 12-02-2025: Financial Result Updates

Total income for the quarter from continuing operations stood at ₹3,442.9 crore, marking a year-over-year growth of 9.9% compared to ₹3,131.4 crore in the same quarter last year. This increase can be attributed to higher order bookings, particularly significant wins like the Vindhyachal Steam Turbine upgrade project for NTPC Limited, valued at ₹348 crore, and operational improvements.

Net profit from continuing operations was ₹78.5 crore, slightly down from ₹85.0 crore in the previous year. Operational margins declined, reflected in an EBITDA margin of 4.5%, compared to 6.8% a year ago, suggesting pressures on cost management despite revenue growth. Total expenses increased to ₹3,364.4 crore, up from ₹2,353.1 crore, primarily driven by rising material costs, which can impede profitability.

The current quarter also witnessed a substantial order backlog growth of 69% year-over-year, bringing the total to ₹27,060 crore, indicating robust demand and future revenue potential.

In terms of financial health, the company maintains a reasonable net worth amid previous losses, with sufficient liquidity expected from operations and available credit facilities. This positions GE Power India well to meet its obligations.

On the strategic front, the company is focused on diversifying into new growth areas, which appears to be gaining traction. Given the current performance and future prospects, a hold position may be advised as the company navigates operational challenges while leveraging increasing market opportunities.