I take pride in presenting the twenty sixth (26th) Annual Report of your company. Having achieved remarkable growth over the last two decades and contributing significantly to the development of power sector of the country, I am pleased that the company has delivered another year of good performance, particularly in the light of challenges of rising raw material prices and shortages.
During the year under review, we have witnessed improved business performance on account of a good traction of domestic orders led by the increased trust of Central / State governments on smart metering. The consolidated net revenue stood at Rs.835.05 crores for FY18 as against Rs.642.37 crores in FY17, up by 30%. The consolidated net profit stood at Rs.84.52 crores for FY18 as against Rs.64.51 crores in FY17, up by 31%. The total order book position as at March 31, 2018 stood at Rs.1096 crores (net of tax). Our book value per share has grown year on year and stood at Rs.29 as at March 31,2018.
Considering the strong performance of the company and in line with the company’s dividend policy, the Board of Directors has recommended a dividend of 41% (i.e. Re.0.41 per equity share of FV of Re.l each) for FY18. This is subject to approval by the shareholders at the ensuing annual general meeting.
Genus remains a healthy organisation positioned as the leading provider of metering solutions and turnkey solutions of engineering, construction & contracts for power distribution sector. Genus has attained prominence as a leader in the field of energy metering through its technological competence, price competitiveness and timely delivery with utmost quality.
Since beginning, Genus has been dedicated to the idea that self-dependence in technologies through in-house research and development is the backbone of sustainable growth and success. Genus incessantly strives for innovation and improved efficiency through its in-house research & development centre (recognized by the Ministry of Science & Technology, Government of India and accredited by National Accreditation Body for Testing Labs (‘NABL’)), highest quality accreditations and ultra-modern manufacturing facilities & techniques with complete forward & backward setup. These allow us to serve our esteemed customers with the fastest and most customised solution at a competitive price. With increasing need for innovation, we have incurred around 28 percent of our earning on R&D during the FY18.
Iam happy to share that Genus continues to be the preferred choice of most state electricity boards and private power utilities in India. With the installation base of over 48 million energy meters across the globe, Genus is constantly helping the power utilities/DISCOMs in curtailing its AT&C losses and improving technological competence.
Genus has entered into smart grid arena in a big way by participating in many of the Smart Grid pilot projects, either directly or indirectly as OEM supplier of smart metering solutions. This has made Genus as a leading supplier of Smart meters / solutions.
Further, Genus has upgraded its prepaid meter into smart prepaid meter by including communication capability in it. India aims to achieve 100 percent energy metering of all households in the country and Government of India intends to replace all electricity meters with smart prepaid meter. The company is best placed to capture any opportunity that market presents with the help of its long-standing industry experience and expertise in providing smart prepaid metering solution across India and the globe.
You would be glad to know that we have enhanced our capabilities in undertaking and managing turnkey metering projects. The reason being the expectations of utilities have now gone up from simply buying meters to get end to end solution from players like Genus. The meter supplies are now getting converted to metering projects that includes besides the supplies, survey of generation / feeder points, consumer indexing, installation, commissioning, supply of other associated materials such as transformers, cables etc, ensuring data communication, establishing data centres, getting data at the main centre as per agreed SLAs and facility management services as applicable. The scope of work differs from project to project. Genus has in hand 22 such projects currently running at different stages and this is giving a new dimension to our business. Obviously this new acquired expertise is going to put your company in the lead among others and help it take longer strides going forward.
Export market has also been an area of our focus and we have been following it up aggressively in some of the untapped developing markets. We continue to make new partnership/relationship to gain a strong foothold in overseas market. This is helping us to provide access to the overseas distribution companies and opens doors for capitalizing on large opportunities in the untapped developing markets by offering customised metering solutions suiting local requirements. We are happy to share that your company made a major breakthrough in exports and got an order for the supply of 1,00,000 single phase smart meters with plug in communication from a prestigious overseas utility Singapore Power Assets Limited. Singapore Power Group is a leading energy utility group in the Asia Pacific. It owns and operates electricity & gas transmission and distribution businesses in Singapore and partly in other countries. Company expects this order to be a showcase for other similar smart meter opportunities being rolled out in nearby South East Asian countries. We believe in the coming years, exports would be significant contributor to our business.
Your company also made significant progress in the design and development of Diaphragm based Smart gas meter “Pravaah” for measuring accurately volumes of natural gas and LPG (Liquid Petroleum Gas) supplied through pipelines for residential users in high rise buildings, societies and commercial organisations. Further Genus Gas meters are being made AMR Compliant with connect/disconnect feature. Given the importance being given to City Gas Distribution (CGD) development by the government and industry players, in general and under Smart City Initiatives, we see a big market, with hardly any local player of repute for these Gas meters in the coming days.
With the government’s earnest efforts on revival of the power transmission & distribution sector through its various programs and policies such as UDAY Scheme, Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, Make in India, Digital India, National Smart Grid Mission, Smart Cities, Housing for All, Power for All, Solar Net Metering and higher budgetary allocations, we are confident of continuing on our growth path in the near future.
As we look to the years ahead, we at Genus reiterate its pledge to remain committed to technological excellence, keep abreast of changes & innovations, adopt better management & operational techniques and successfully overcome all challenges lying before us.
I always believe that building and maintaining good relationship at workplace is the key to success in any business. Engaging satisfied employees always offer more creativity, which in turn brings innovation. I extend my most sincere appreciation and gratitude to our board members and employees at all levels for their hard work and passion in keeping our goal to make Genus successful, and most importantly for creating a harmonious atmosphere at workplaces. It is my privilege to serve as Chairman of this organization and look forward to continued healthy relationships with everyone in the workplace and take the company to the newer heights of success in the years ahead.
Finally, on behalf of the Board and all at Genus, I must thank all valued members for continued support & encouragement and lookforward for continued association in years to come.
ISHWAR CHAND AGARWAL
Jaipur, August 10, 2018