The implementation of the Revamped Distribution Sector Scheme (RDSS) will revolutionize the Indian metering industry, noted Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures Ltd, in an investor presentation.
According to Agarwal, the adoption of smart meters in India is expected to drive a transition from conventional metering systems to smart meters, leading to improved operating margins within the industry. “We anticipate robust order inflows, healthy revenue expansion, elevated operating margins, and an improved working capital cycle for the Indian metering sector commencing FY24,” J.K. Agarwal was quoted as saying.
With a presence of over 20 years in the electricity metering business, the company holds a dominant position in India with a market share of around 27 percent in the overall energy metering business. Speaking of smart meters, Genus has an estimated market share of 70 percent.
Genus Power currently has a total installed capacity of 10 million meters per year, serviced through its manufacturing facilities spread over Rajasthan, Uttarakhand, and Assam. Till end-2022, Genus Power had an installed base of over 70 million meters.
Also read: Genus Power Wins Mega Smart Metering Order Under RDSS
Meanwhile, the company’s outstanding order book position, as of March 31, 2023, stood at Rs.1,696 crore, as against Rs.1,080 crore in March 2022. Much of this order book relates to energy metering.
Genus Power also expects that smart meter deployment could result in higher revenues and operating margins for the company. “The cost of smart meters is significantly higher, ranging from three to four times more than conventional meters. Furthermore, smart meters are accompanied by an extensive array of post-purchase support services. Due to this, we expect a substantial surge in revenue from smart meters, along with higher operating margins compared to conventional meters. Moving forward, these developments will significantly impact the economic landscape of the metering industry in India,” observed J.K. Agarwal.
