GE T&D India Shares Rose More Than 100% Since April

GE T&D India hit 52-week highs on the NSE.

Shares of GE T&D India hit a 52-week high of Rs 237.90 in intraday trade on Thursday, surging 13% on the BSE. Shares of the heavy electrical equipment maker have risen 66% over the past month, compared with a 3.4% gain in the S&P BSE Sensex.

Since April, the company’s market price has more than doubled, up 101%, from the Rs 118.65 level touched on March 31, 2023.

GE T&D India has clarified that the company has made all the required disclosures to the stock exchange within the stipulated time following Sebi’s listing regulations. “In our opinion, there are no information/announcements (including imminent ones) that could have had an impact on the price/volume behaviour of the company’s shares, and the company is subject to a date,” the company said on April 28.

The Finance Minister’s latest 2023-24 budget highlighted the government’s commitment to net zero carbon emissions by 2070.

Green energy is one of the seven most important priorities in the Budget. It includes allocating Rs 35,000 crore for priority capital investment towards net zero emissions by 2070. The budget also allocates a vital Rs 8,300 crore from the central fund, which is expected to be used to build the interstate transmission system to pull and grid-connect 13 GW of energy from Ladakh.

The accelerated development of clean energy, as well as the government’s focus on policy reforms such as electric vehicle industry reform, and the overall manufacturing landscape, will also drive the transmission sector, management said.

Meanwhile, GE T&D India’s board of directors is scheduled to meet on May 23, 2023, to consider and approve the audited financial results for the financial year ending March 31, 2023, and to consider dividend proposals for the year, if any.

GE T&D India is a leader in power transmission and distribution – with a product portfolio ranging from medium voltage to extra high voltage (1200 kV) for the power generation, transmission and distribution, and industrial and infrastructure markets.

For the October-December quarter (Q3FY23), GE T&D India reported strong operating results despite a decline in revenue. The company’s order bookings jumped 52.8% to Rs 780 crore from Rs 510 crore in the previous quarter.

Operating profit rose 75% to Rs 25.24 crore in Q3FY23 compared to Rs 14.41 crore in Q3FY22. It reported a profit after tax of Rs 4.74 crore compared to a net loss of Rs 0.10 crore a year earlier. Sales revenue fell to Rs 780 crore from Rs 910 crore in Q3FY22.

This decrease was primarily due to a reduction in backlog due to lower order bookings due to the Covid-19 pandemic over the past few years. However, the company said pre-tax profit increased due to successful project execution and various improvement efforts.

Management said orders from industries such as refineries and data centres continued to gradually increase, increasing the diversity of the company’s backlog and providing more opportunities for efficiency gains.

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