Home / Business and Economy / GE Vernova T&D India Beats Earnings Estimates
GE Vernova T&D India Beats Earnings Estimates
2 Nov
Summary
- Company's Q2 profit after tax increased by 44.15% year-on-year.
- EBITDA margin expanded to 27.1%, exceeding expectations.
- Management reaffirms FY27 EBITDA margin guidance of mid-20s.
GE Vernova T&D India showcased robust financial performance in its second quarter, with profit after tax (PAT) rising by 44.15% to ₹431 crore, exceeding the projected ₹385.7 crore. Revenue for the quarter also saw a slight increase, reaching ₹2,027 crore against an expected ₹1,970 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 38.8% to ₹549.7 crore, outperforming the projected ₹501 crore.
The company's EBITDA margin improved to 27.1% from 25.7% in the same period last year, surpassing the poll expectation of 25.4%. This expansion was attributed to gross margin improvements and operating leverage, stemming from strong execution that also drove a 32% year-on-year revenue increase.
GE Vernova T&D's order inflow significantly increased to ₹2,440 crore, boosting its order backlog to ₹21,440 crore. Management confirmed its FY27 EBITDA margin guidance of mid-20s and projected over 30% annual execution growth for the next three to four years, bolstered by its strong backlog and the anticipated Barmer HVDC order.
Further growth drivers include maintaining the FY27 base order inflow target of ₹7,200-₹8,000 crore, with STATCOM and data centre orders expected to accelerate from the fourth quarter. The company anticipates bidding for 2-3 HVDC projects in FY28, with exports contributing 21% to Q2 order inflows and 32% to revenue.
