GENUSPOWER

May 24, 2023 National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Plot no. C/1, G Block, P.J. Towers, Bandra-Kurla Complex, Bandra (E), Dalal Street, Fort, Mumbai - 400 051. Mumbai – 400001 (NSE Symbol: GENUSPOWER) (BSE Code: 530343) Dear Sir/Madam, Sub: Investor Presentation Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the Investor Presentation – May 2023. We request to kindly take the same on record. Thanking you, Yours truly, For Genus Power Infrastructures Limited Ankit Jhanjhari Company Secretary Encl. as above Genus Power Infrastructures Limited Corporate Office: Registered Office: (A Kailash Group Company) SPL-3, RIICO Industrial Area, Sitapura, Tonk Road, G-123, Sector-63, Noida, Corporate Id entity Number Jaipur-302022 , (Raj.), India Uttar Pradesh-201307 (India) L51909UP1992PLC051997 T. +91-141-7102400/500 • F. +91-141-2770319, 7102503 T. +91-120-2581999 E. info@genus.in • W. www.genuspower.com E. info@genus.in Genus Power Infrastructures Limited May Corporate 2023 Presentation 1 Safe Harbour This presentation and the accompanying slides (the “Presentation”), by Genus Power Infrastructures Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities ofthe Companywill be madeexcept by meansofa statutory offeringdocumentcontainingdetailed information aboutthe Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentationare not adoptedby the Companyandthe Companyis not responsibleforsuch third party statements andprojections. 2 Q4 FY23: Performance Highlights Key Highlights Revenue (Rs. Crores) EBITDA (Rs. Crores) • A part of our Q4FY23 topline +12% +42% has spilled over to the next 202.3 27.2 quarter, as the goods were in 181.0 transittotheend-customer 19.1 • Persistent scarcity of semiconductors and other crucial electronic components has impeded revenue growth Q4FY22 Q4FY23 Q4FY22 Q4FY23 andreducedcapacityutilization inFY23 • Operating margins have been impacted by elevated raw PAT (Rs. Crores) Cash PAT (Rs. Crores) material expenses and reduced capacityutilisation +14% +4% • Became the First company in Asia Pacific to supply 15 million 12.5 16.6 17.3 11.0 SmartMeters • Indigenously developed Vending Software AgrimTM accredited with STS certification Q4FY22 Q4FY23 Q4FY22 Q4FY23 3 Standalone Results As per IND-AS Note: Cash PAT includes PAT + Depreciation + Deferred Tax Business Restructuring STEP 1: Genus Prime Infra Limited Post Amalgamation subsidiary companies Amalgamation of will cease to exist subsidiary companies with Genus Prime Amalgamated Genus Prime Infra Limited Sansar Infrastructure Pvt. Ltd, Star VanijyaPvt. Ltd and SunimaTrading Pvt. ✓ No consideration shall be paid to subsidiary Ltd (100% subsidiary of Genus Prime) companies as they are 100% owned by Genus Prime STEP 2: Investment Business Undertaking of Post the scheme of Arrangement – 2 listed entities Demerger of Genus Power’s Genus Power investment in non-listed Genus Power group entities Demerger Genus Prime Infra ✓ Shareholders of the Genus Power will get shares of Genus Prime Infra Ltd. Genus Prime Infra Limited in ratio of 6:1 STEP 3: Genus Prime Infra Ltd. Post Merger Yajur Commodities Ltd. Merger of Yajur will cease to exist Commodities with Genus Prime Merger Genus Prime Infra Limited YajurCommodities Limited (a group company of Genus Power in ✓ Shareholders of the Yajur Commodities Limited will which it owns 19.70% stake) get shares of Genus Prime Infra Limited in ratio of 5:3 Genus Trust holding of shares of Genus Power Infrastructures Ltd. and Genus Paper Boards Ltd. along with liquid investments will continue to be part of 4 Genus Power Infrastructures Ltd (standalone entity) Performance Highlights For Last Few Quarters 301.5 292.1 275.4 268.6 268.0 248.3 238.6 223.4 218.6 200.4 202.3 195.9 190.7 187.0 177.8 181.0 165.1 168.8 130.4 84.0 Q1 Q2FY19Q3FY19Q4FY19Q1FY20 Q2 Q3 Q4 Q1FY21Q2FY21Q3FY21Q4FY21Q1FY22Q2FY22Q3FY22Q4FY22Q1FY23Q2FY23Q3FY23Q4FY23 FY19 FY20 FY20 FY20 Revenue (Rs. Crores) 5 Standalone Results As per IND-AS Strong Order Book We upgrade our technology and product Order Book (Rs. Crores) offering at regular interval backed by continuous R&D +23% 1,696 1,498 Strong Demand for various types of Meter 1,276 across State Electricity Boards & Private 1,080 943 931 Players 685 386 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Genus uniquely positioned to suffice needs The total order book value as on March 31, 2023, including LOA received by of the rising demand of Meters wholly owned subsidiaries during fourth quarter, is Rs. 4,115 crore (net of taxes) 6 Management Commentary “In FY23, we persistently experienced supply chain challenges with semiconductors and other critical electronic components. Ourtop-line growth was subdued due to inadequate capacity utilisation, which also had an adverse impact on our operating margins. We are confident that our strong orderbook and steady order inflow, coupled with the normalisation of supply chain, will result in a significant revenue rebound in the upcoming quarters. We are also pleased to have partnered with United States International Development Finance Corporation (“DFC”)foraninitialcommitmentofUSD49.5millionloantoscaleupthedeploymentofsmartmetersacrossIndia. The implementation of Revamped Distribution Sector Scheme (RDSS) will revolutionise the Indian metering industry, leading to a significant increase in the annual industry size. 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 anticipaterobustorderinflows,healthyrevenueexpansion,elevatedoperatingmargins,andanimprovedworkingcapitalcyclefortheIndianmeteringsectorcommencinginFY24. The allocation towards the Revamped Distribution Sector Scheme (RDSS) has been increased twofold to reach Rs. 12,000 crore in the 2023-24 Union Budget. The budget also ushered in a keymeasureforthefinancialhealthofstates'distributionutilitiesbytying0.5%oftheirdeficittopowersectorreforms,asanextensionfromlastyear.Continuedfiscalsupportisanadded incentiveforthestatestoundertakepowerdistributionreforms.ThesereformswillyieldintheupgradationoftheDISCOMnetworkandmetering,therebycurbingAT&Closses. 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 metres. Moving forward,thesedevelopmentswillsignificantlyimpacttheeconomiclandscapeofthemeteringindustryinIndia. Atourcompany,wetakeprideinourabilitytohandleeveryaspectoftheproductionprocessin-house.Thisincludeseverythingfromconceptualizationanddesigntotoolsroom,moulding machines, assembly lines, and test labs. By doing so, we ensure that we consistently meet and exceed the highest industry standards. Our unique selling proposition lies in our ability to customiseproductstoourclients' metering requirements in a timely and cost-efficient manner. Ourservice capabilities havebeen developedin tandemwithourtechnological capabilities. We provide comprehensive end-to-end service solutions, including meter installation, meter maintenance, data analytics, and MDM solutions, among others. This gives us a noteworthy edgeoverourcompetitors. We have a long-standing presence in the electricity metering industry, spanning over 20 years. We currently hold the dominant market position in India, with a market share of around 27%.Weaimto re-establishourleadership position inthesmartmetering industrybyleveragingourinherentstrengthsandcapabilities.Beingthedominant playerintheIndian metering industry,wearefavourablypositionedtocapitaliseonthesector'ssignificantgrowthpotential.” Mr. Jitendra Kumar Agarwal, Joint Managing Director 7 3 Standalone Profit & Loss Statement Particulars (Rs. Crores) Q4FY23 Q4FY22 YoY FY23 FY22 YoY Total Revenue 202.3 181.0 11.8% 808.4 685.1 18.0% Cost of Material Consumed 121.4 115.4 519.2 435.1 Employee Expenses 31.2 27.3 123.6 106.6 Other Expenses 22.7 19.2 86.8 83.8 EBITDA 27.2 19.1 41.9% 78.8 59.6 32.2% EBITDA (%) 13.4% 10.6% 9.8% 8.7% Other Income 4.1 9.0 18.4 26.8 Depreciation 4.6 5.0 18.7 20.5 EBIT 26.6 23.1 15.2% 78.5 66.0 18.9% EBIT (%) 13.2% 12.8% 9.7% 9.6% Finance Cost 9.1 5.5 28.2 25.7 Profit before Tax 17.6 17.6 -0.3% 50.3 40.3 24.6% Tax 5.1 6.6 15.3 14.5 Profit after Tax 12.5 11.0 13.6% 35.0 25.8 35.4% PAT (%) 6.2% 6.1% 4.3% 3.8% Cash PAT* 17.3 16.6 3.7% 52.2 46.9 11.3% Cash PAT (%) 8.5% 9.2% 6.5% 6.9% EPS (in Rs.) 0.48 0.42 1.35 0.99 8 *Cash PAT includes PAT + Depreciation + Deferred Tax. As per IND-AS 3 Standalone Balance Sheet ASSETS (Rs. Crores) Mar-23 Mar-22 EQUITY AND LIABILITIES(Rs. Crores) Mar-23 Mar-22 Non-current assets Equity Equity share capital 25.8 25.8 Property, plant and equipment 139.3 138.6 Other equity 958.8 929.4 Capital work-in-progress 7.3 2.0 Total equity 984.6 955.2 Right of Use Assets 16.2 15.4 Intangible assets 1.1 1.5 Non-current liabilities Investment in Associates/Subsidiaries 18.0 16.6 Financial liabilities Financial assets Borrowings 1.7 0.8 Investments 102.2 88.8 Lease liabilities 0.2 0.1 Loans 111.6 26.4 Other financial liabilities 66.8 7.1 Others 26.1 79.1 Provisions 32.4 36.1 Non-financial assets 25.0 10.5 Government grants 2.7 3.4 Net employee defined benefit liabilities 0.9 1.6 Sub-total -Non-Current Assets 446.6 378.9 Deferred tax liabilities (net) 1.3 2.9 Sub-total -Non-current liabilities 105.9 51.9 Current assets Inventories 285.9 220.1 Current liabilities Financial assets Financial liabilities Investments 162.6 146.7 Borrowings 345.2 269.2 Investment in trust 60.0 60.0 Trade payables 163.8 192.4 Loans 20.7 10.0 Lease liabilities 0.4 0.9 Trade receivables 472.0 557.7 Other liabilities 42.3 13.0 Government grants 0.7 0.7 Cash and cash equivalents 59.7 10.5 Net employee defined benefit liabilities 1.4 1.8 Other bank balances 76.8 76.2 Current tax liabilities (net) 2.7 0.8 Other financial assets 13.6 19.3 Provisions 8.1 10.3 Non-financial assets 68.6 31.0 Non-financial liabilities 11.3 14.2 Sub-total -Current Assets 1,219.8 1,131.5 Sub-total -Current liabilities 576.0 503.3 TOTAL -ASSETS 1,666.4 1,510.4 TOTAL -EQUITY AND LIABILITIES 1,666.4 1,510.4 9 As per IND-AS Power Sector Leadership Largest player in India’s electricity meter industry Incorporated in 1992, Part of $400 mn Kailash Group ~27% market share in Meter Industry Over 2 decades of experience in electricity metering solutions ~70% market share in Smart Meters industry Share of Metering Projects increasing Top-notch In-house R&D recognized by Govt of India Empanelled with 40+ different utilities across the country 25,000 Sq. Mtrs of Integrated Manufacturing 70 mn+ Meters installed Annual Production capacity of 10 mn+ meters Capability to undertake turnkey power projects up to 400 KV 11 Journey So Far ▪ Production of ▪ Deployed Smart ▪ India's First Narrowband Electronic Energy ▪ AMR / Pre- Metering Solution at -IOT setup for AMI with Meters payment Meter/ Shapur(Junagarh) Vodafone Idea DT Meter launched PGVCL –India’s First ▪ Among theTop 10 ▪ Established Single ▪ Ventured into Smart Village Project Global AMI & Three Phase Electronic Energy Power Distribution ▪ Implemented India’s Companiesas per IHS Meters Management first End to End Smart Markit’s Projects Metering Solution at ElectricityMeters Report ▪ Multi-functional & ▪ Manufacturing Kala AmbHPSEB’s –Edition2018 Multi-tariff facility at Haridwar Smart Grid Pilot Project ▪ Smart Meter Integrated Meters launched commissioned with Alstom line getting operational 1996 - 1999 2005 - 2009 2014 - 2016 2018 - 2019 1992 - 1995 2000 - 2004 2010 - 2013 2017 - 2018 2020 - 2022 ▪ R&D recognized by ▪ Launched meter ▪ Intelligent Group ▪ Became the First • Company founded Government of with integrated Metering systems company in Asia for manufacturing India APFC, Smart deployed at BSES Pacific to supply 1.5 Thick Film Hybrid Microcircuits & SMT ▪ Lean Meters, smart ▪ Smart Meters order million Smart Meters PCB Assemblies Manufacturing street light from EESL for supply ▪ Indigenously with help of TBM management of 13.5 lakh meters developed Vending • First Production consultants, USA system, Group Software AgrimTM facility set up in ▪ Only Indian company Metering etc accredited with STS Sitapura, Jaipur ▪ Increased product to receive BIS certification range of electronic certification for energy meters Smart Meters ▪ Only Indian company to receive BIS ▪ Set up and certification for Commenced Smart Gas Meters production at Assam plant 12 Journey So Far Meter Installed Till 2003 Till 2006 Till 2010 Till 2014 Till 2018 Till 2022* 2,500,000 5,000,000 10,000,000 30,000,000 50,000,000 70,000,000 13 *As on 31stMarch 2022 Experienced Management Team Mr. Ishwar Chand Agarwal Executive Chairman Mr. Kailash Chandra Mr. Rajendra Kumar Agarwal Mr. Jitendra Kumar Agarwal Agarwal Vice-Chairman, Non-Executive, Joint Managing Director Managing Director and CEO Non-Independent Dr. Keith Mario Torpy Mr. Subhash Chandra Garg Ms. Sharmila Chavaly Non-Executive, Independent Director Independent Director Non-Independent Director Mr. R Viswanathan Dr. Giriraj Nyati Chief Management Advisor (Operations) Representative Mr. Ranvir Singh Rathore Mr. N L Nama Dr. Anukram Mishra Executive VP –Head Chief Financial Officer Chief Technical Officer R&D (Devices) 14 Pillars of Competitive Edge Infrastructure R&D Certifications Workforce CADY,O DUieRs a TnEd XMTo HldEdResEigns, In- P h U ou T s T e E R X & T D H Ce E n R tr E e, C Y M O M U I R le T ve E l X 3 T C o H m E p R a E ny Ar P m U e T d T w E it X h T lo n H g E -t R e E rm, recognised by Ministry of Accredited with - ISI, KEMA, highly-experienced and Molding, Automated SMT Science and Technology, the SGS, STS, ZIGBEE, UL, DLMS best-in-class technologist, lines, Lean Assembly Government of India and etc., which is amongst the engineers and techniques and the state-of- accredited by National highest in Indian Metering executives the-art manufacturing Accreditation Body for Solutions Industry facilities with complete Testing Labs forward and backward integration 15 Business Verticals SMART METERING SOLUTIONS Offers a wide spectrum of Smart Metering Solutions, that includes High End Multifunction Single Phase and Three Phase Meters, CT Operated Meters & HES (Head End System), ABT & Grid Meters, Distribution Transformer (DT Meters), Pre-payment Meters, Group Metering, Smart Street Light Management Solution, Net- Metering Solution for rooftop Solar, Data Concentrator, Energy Management solution for Building Management and DC Metering Solution, Gas Meter etc Genus specializes in providing end-to-end metering solutions (AMI) with communication modules and software under its Smart Energy Management Solution ENGINEERING, CONSTRUCTIONS AND CONTRACTS (ECC) Customized and turnkey (ECC) solutions to the Power Transmission and Distribution (T&D) sector Under the turnkey ECC solutions, Genus offers One Stop Total Solution of Metering, Engineering & Construction from ‘Concept to Commissioning’ with distinctive specialization in Smart Metering Solution & Advance Metering Infrastructure 16 End to End Energy Management Solutions Meters from Generation to Consumption 17 Diversified Product – Market Mix RESIDENTIAL & COMMERCIAL INDUSTRIAL PREPAYMENT SOLUTION Meters with communication LT / HT CT Meter with Integrated Single Phase Prepayment Meter capability Communication Three Phase Prepayment Meter Single / Three Phase Smart Meters with Automatic Power Meters Factor Controller Dual prepayment Solution Net Meters ABT Meter DIN Rail Prepayment Meter Smart Street Light Smart High end Meters Prepaid Vending Software Management System On-Line “Pre-paid” Metering Group Metering Solution 18 Diversified Product – Market Mix DISTRIBUTION TRANSFORMER OPEN ACCESS / GRID CALIBRATION EQUIPMENT Thread Through Metering Grid & Sub-Station Meter (ABT Single Phase Portable Reference Solution for Distribution Complaint) Meter Transformer Three Phase Portable Reference Smart DT Meter with Meter Integrated Communication 19 Engineering Construction & Contracts ECC Division Leveraging on Strength Complements the Metering Business Provides total engineering and More than 20 years of experience in Increased implementation of Smart construction solution from “Concept to Indian Power distribution sector metering solution Commissioning” Engineered Energy meter solutions Higher sales growth under metering Offers turnkey solutions of MV, HV & backed up with in-house R&D and division EHV sub-stations & transmission lines technological prowess Margin expansion and execute turnkey jobs up to 420 KV Gain Market share Current Projects under implementation Design, engineering, supply of equipments for substation, transmission line and associated system towards construction of 220 /33 KV Substation at Chhatti Bariatu, 220 KV double circuit, Transmission Line from PTPS to Pakri Barwadih and from Pakri Barwadih to Chhatti Bariatu along with Back-UpPower Solution with installation ofDG Sets and associated system in Coal Mining Project of NTPCat Chatti Bariatu and Kerendari. Genus Power would benefit from the GOI’s plan to reduce T&D losses in coming years 20 Balanced Client Mix SEB’s registered under UDAY schemes are the major revenue contributors 21 Manufacturing Assets at Glance R&D Centre and Corporate Office, Sitapura, Jaipur Ramchandrapura, Jaipur Haridwar, Uttaranchal Haridwar, Uttaranchal Guwahati, Assam Total Installed capacity of over 10 million meters per annum 22 Quality Assurance Quality is the hallmark of Genus products and services Comprehensive testing is carried out at various stages of product manufacturing starting from incoming raw material/components to in-process stages and to the final finished and packed product In-House NABL Accredited Electronic Energy Meter Testing Laboratories A series of reliability tests are conducted periodically both on in-house reliability chambers and from NABL approved outside test labs, to establish a satisfactory life of the product in the hands of the customer. 23 Quality Certifications CMMI Level 3 STS certification Bureau Veritas National Accreditation Board for QSI Certification Company Testing and Calibration Laboratories KEMA Certification R&D Lab recognized by MSD, GOI Silver Certificate by Frost & Sullivan IEC Certifications ZigBeeCertification STQC Certifications DLMS Certification for Meters EMC Certifications IECQ for quality of components C-DOT Certifications Awarded various national and international quality accreditations such as 24 various ‘ISO’ marks, OHSAS 18001 ‘BIS‘, NABL, ‘STS’, ‘EMC’, ‘ISI’, ‘S’ mark, etc., Infrastructure & Testing Capabilities Integrated Manufacturing Facilities 01 In-house Technology product since inception 02 Clean room PCB Assemblies Truly “Made in India” 03 Automated SMT Lines 04 Reflow and wave soldering • Quality Assurance • Innovation & R&D Lean Production Line 05 • In-House NABL Accredited Electronic Energy Meter Testing Laboratories 06 Automated Test Benches (recognized by Ministry of Science & Technology, Govt. of India) • Lean Manufacturing 07 In-house tool room 08 Plastic Molding Qualified & Capable to service the ever- Sustainable Supply Chain 09 growing power sector demand by Management adhering to stringent protocol 10 Controlled Stores 25 Recently Won Awards In June 2022, Genus Power won the prestigious “The Genus Power also won the “Asia Business Outlook Top 10 Economic Times Energy Leadership Award” for Manufacturing Companies in India 2022” as a testament contributions to the energy sector as an equipment to the competence and excellent application of industry manufacturer standards 26 Other Key Awards Received 2004: 2011: 2013: Rated among top 100 Electronic Outstanding performance award by The prestigious EFY Reader’s choice top 5 companies in India by EFY NDPL towards AT&C loss reduction brands 2015: 2015: Accorded Excellence in Quality by “Silver Certificate of Merit” by Frost & Golden Peacock National Quality Sullivan’s India Manufacturing Excellence Awards, 2015 Awards 2015 2018: 2019-20: The Global Centerof Excellence at Jaipur for the successful testing & integration of Genus “Best Innovation Award” and “Brand Ambassador Smart Electricity Meter Solution in the Living Lab in Jaipur 2020 Award” by Alleem Business Congress, UAE Quality team won 7 Gold & 3 Silvers in 32nd National Convention Quality Circle Awards Ranked among “Top 25 Most Trusted Manufacturing organised by “Quality Circle Forum of India” at Gwalior & Haridwar Companies in India” by the CEO Magazine 2019-20: Recognition from CESC for “Active Involvement in Development of Smart Meters” Our Multiple Team won 17 Awards (11 Gold ; 04 Silver; 02 Bronze) in Lucknow Center Convention, Haridwar Center Convention and Kaizen Competition on Quality Circle Forum of India 27 AT&C Losses in India are Three Times the Deficit ▪ AT&C Loss = (Energy input – Energy billed) * 100 / Energy input ▪ At present, India loses around 30% of its power generated due to transmission, distribution, billing generation and collection inefficiencies ▪ Theft is the one of the main causes of the high losses. Theft occurs in several ways, viz: by tapping power lines and tempering / by-passing meter etc ▪ Meters play a vital role in reduction of AT&C Losses - Replacement of defective meters by tamper proof electronic meters / smart meters - AMI / Smart metering to the consumer for reduction of commercial losses and billing and collection ease ▪ Smart meter has the following capabilities: - Smart Meters and AMI Meters have communication capability - It can register real time or near real time consumption of electricity or export both. - Read the meter both locally or remotely - Remote connection or disconnection of electricity - Remote communication facilities through GSM / GPRS / RF etc ▪ India can save Rs. 9.5 lakh crore by investing Rs 1.25 lakh crore for replacing 25 crore conventional meters with smart meters 29 Source: Various Articles Reforms-Based, Result-Linked Power Distribution Sector Scheme Government has approved Rs. 3.03 trillion power distribution company (DISCOM) reform scheme.About half of the total funds of thescheme i.e. aboutRs. 1.5 trillion 01 aretobedeployed for installation of smart meters Scheme aims to bring down AT&C losses from the present level of 21.4% to 12-15% by 2024-25 & narrow the deficit between the cost of electricity and the price at 02 whichitissuppliedto‘zero’ by2024-25 ▪ Scheme involves a compulsory smart metering ecosystem including in about250millionhouseholds Revamped Distribution 03 ▪ Proposes to install approximately 100 million Smart Meters across 500 Sector Scheme Amrut cities, micro, SMEs, and government departments by December 2023in thefirst phase Metering (feeder and DT) will be carried out in TOTEX* mode. Grant for metering is 04 15%. Remaining 85% costs are expected to be financed through improvement in billing andcollections 05 PFCandREChavebeennominatedasnodalagenciesforimplementationofthescheme.Theschemewill *In TOTEX mode, Capital Expenditure and Operational beapplicabletill2025-26andwillsubsumeprogramssuchastheIntegratedPowerDevelopmentScheme Expenditure interrelation is acknowledged and they receive andtheDeenDayalUpadhyayaGramJyotiYojana 30 sameattentioninplanning,implementationandregulation Stringent Qualification Criteria & State-specific Interventions Different from Tripartite Agreements Qualification Criteria State-wise Evaluation Fund Disbursement Earlier Schemes DISCOMs would need Implementation of the approvals from their state To qualify for the scheme, Evaluation framework for the Funds under the scheme will Scheme would be based on cabinets to become part of DISCOMs will have to: scheme will be formulated be released to DISCOMs on the action plan worked out the scheme based on the agreed action meeting pre-qualifying criteria for each state rather than a • publish quarterly plan for each individual state as well as upon achievement “one-size-fits-all” approach unaudited accounts in Tripartite agreements of basic minimum 60 days of the end of between states, DISCOMs benchmarks evaluated on the each quarter and nodal agencies for the basis of agreed evaluation scheme will be signed Reforms Based • ensure no new Base Year for Evaluation framework tied to financial regulatory assets have improvements been created DISCOMs have been asked to Union Power Ministry has • state governments have The base year for evaluation submit their applications DISCOMs will have to score a suggested an indicative list paid subsidy in full will be 2019-20 while with loss reduction plans to minimum 60 marks on the of reforms to be covered by government bodies have trajectories will be set for the Union Power Ministry by evaluation matrix to be the DISCOMs under the paid bills 2021-22 to 2025-26 across October 31, 2021 eligible for fund release each scheme various parameters year Funding for Metering Other Key Condition for Funding For metering, DISCOMs will be allowed to claim the grant funds in phased manner Under the five-year program, if a DISCOM is found ineligible for the reforms-based, for every 5% of meters commissioned against total number of meters awarded results-linked scheme for financial assistance in any year, then the gap in funding to complete its projects will have to be met by the DISCOM or its state government Evident from the scale of tenders that have been floated recently, that various states are eager to implement this Scheme thoroughly However, the unmet targets for one year will get added to the targets for the next year 31 Metering Opportunity METERING OPPORTUNITY India has 250 million legacy meters There are plans to install up to 130 million smart meters As per the, notification by power ministry, dated 8th by 2021 September 2016 : Mandatory rollout of Smart Meters, for consumers GOVERNMENT INVESTMENT with monthly consumption of 500 units and more The government is planning to invest up to $21 billion till 2025 in smart grid technologies Mandatory rollout of Smart Meters, for consumers with monthly consumption of 200 units and more The smart cities initiative is targeting 100+ cities in India, out of which 20 have been declared and work for them will start in the next month Current Power minister Mr R. K. Singh has extended or two deadline to end of FY22 More than 14 smart grid pilots have been launched in cities across India, to push smart solutions in Power Generation & Distribution Industry 32 Source: Various Articles Smart Meter is the Future Latching Switch What are Smart Meters ? Smartmeterswillhaveakillswitchwhichwillcloseofftheutilitysupply. The kill switch will be operated via Internet. This will give power to utilityproviderstostartandstopthesupplyattheclickofabutton Smart meters are remarkably different from electronic meters. While electronic meters only measure the amount of utility used, a smart meter is used to measure the utility and Increased customer involvement then transmit the reading without any human intervention As all the data collected will be uploaded on the Internet the customers will be able to access it using their smart phones application. This will give them a clear idea about daily, hourly and even per-minute ✓ Allowing utilities to introduce different prices for consumption,andhowitisbilled different consumption during different season ✓ Control devices with two-way communication between Prepaid Schemes the meter and the central system Customerswillbeabletorechargetheirmeterstotheamountofenergy usage and consume only that much. As the meters are smart, they will remind the consumer when thebalance isrunning low,or when a larger than normal chunk is being used. This will help consumers save money, andtaketheloadofbillingoffthelocalbody Consumption Patterns As consumers will be able to access the data on their mobile phones / tablets / PCs, they will be able to cut their expenses using simple strategies. For example not using water heaters or electric irons during peakhour 33 Source: Various Articles Geared to Ride the Growth Wave Market leaders in metering business National and International Extensive Management Recognition and certifications Experience Integrated manufacturing facility/ largest installation base Strong Pre - qualification Credentials In-house R&D Centre Long Lasting Relationships with the Customers Comprehensive range of metering products / solutions First Indian Company to get BIS Certificate for Smart Energy Meters and Smart Gas Meters 34 Financial Highlights Revenue (Rs. Crore) EBITDA (Rs. Crore) 1,056 1,060 173 808 128 685 609 102 79 60 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Cash PAT (Rs. Crore) PAT (Rs. Crore) 94 116 72 92 74 51 52 47 35 26 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Standalone Results As per IND-AS 36 3 Standalone Profit & Loss Statement Particulars (Rs. Crores) FY23 FY22 YoY Total Revenue 808.4 685.1 18.0% Cost of Material Consumed 519.2 435.1 Employee Expenses 123.6 106.6 Other Expenses 86.8 83.8 EBITDA 78.8 59.6 32.2% EBITDA (%) 9.8% 8.7% Other Income 18.4 26.8 Depreciation 18.7 20.5 EBIT 78.5 66.0 18.9% EBIT (%) 9.7% 9.6% Finance Cost 28.2 25.7 Profit before Tax 50.3 40.3 24.6% Tax 15.3 14.5 Profit after Tax 35.0 25.8 35.4% PAT (%) 4.3% 3.8% Cash PAT* 52.2 46.9 11.3% Cash PAT (%) 6.5% 6.9% EPS (in Rs.) 1.35 0.99 37 *Cash PAT includes PAT + Depreciation + Deferred Tax. As per IND-AS 3 Standalone Balance Sheet ASSETS (Rs. Crores) Mar-23 Mar-22 EQUITY AND LIABILITIES(Rs. Crores) Mar-23 Mar-22 Non-current assets Equity Equity share capital 25.8 25.8 Property, plant and equipment 139.3 138.6 Other equity 958.8 929.4 Capital work-in-progress 7.3 2.0 Total equity 984.6 955.2 Right of Use Assets 16.2 15.4 Intangible assets 1.1 1.5 Non-current liabilities Investment in Associates/Subsidiaries 18.0 16.6 Financial liabilities Financial assets Borrowings 1.7 0.8 Investments 102.2 88.8 Lease liabilities 0.2 0.1 Loans 111.6 26.4 Other financial liabilities 66.8 7.1 Others 26.1 79.1 Provisions 32.4 36.1 Non-financial assets 25.0 10.5 Government grants 2.7 3.4 Net employee defined benefit liabilities 0.9 1.6 Sub-total -Non-Current Assets 446.6 378.9 Deferred tax liabilities (net) 1.3 2.9 Sub-total -Non-current liabilities 105.9 51.9 Current assets Inventories 285.9 220.1 Current liabilities Financial assets Financial liabilities Investments 162.6 146.7 Borrowings 345.2 269.2 Investment in trust 60.0 60.0 Trade payables 163.8 192.4 Loans 20.7 10.0 Lease liabilities 0.4 0.9 Trade receivables 472.0 557.7 Other liabilities 42.3 13.0 Government grants 0.7 0.7 Cash and cash equivalents 59.7 10.5 Net employee defined benefit liabilities 1.4 1.8 Other bank balances 76.8 76.2 Current tax liabilities (net) 2.7 0.8 Other financial assets 13.6 19.3 Provisions 8.1 10.3 Non-financial assets 68.6 31.0 Non-financial liabilities 11.3 14.2 Sub-total -Current Assets 1,219.8 1,131.5 Sub-total -Current liabilities 576.0 503.3 TOTAL -ASSETS 1,666.4 1,510.4 TOTAL -EQUITY AND LIABILITIES 1,666.4 1,510.4 38 As per IND-AS 3 Consolidated Profit & Loss Statement Particulars (Rs. Crores) FY23 FY22 Y-o-Y Total Revenue 808.4 685.1 18.0% Cost of Material Consumed 519.2 435.1 Employee Expenses 123.7 106.6 Other Expenses 86.9 83.8 EBITDA 78.6 59.6 31.9% EBITDA (%) 9.7% 8.7% Other Income 13.7 59.4 Depreciation 18.7 20.5 EBIT 73.6 98.5 -25.3% EBIT (%) 9.1% 14.4% Finance Cost 28.8 25.7 Profit before Tax 44.8 72.9 -38.5% Tax 15.2 14.5 Profit before Associate 29.6 58.4 -49.2% PAT % 3.7% 8.5% Profit / Loss of Associates -0.7 -0.9 Profit after Tax 29.0 57.5 -49.6% PAT (%) 3.6% 8.4% Cash PAT* 46.1 78.6 -41.3% Cash PAT (%) 5.7% 11.5% EPS (in Rs.) 1.25 2.48 39 *Cash PAT includes PAT + Depreciation + Deferred Tax. As per IND-AS 3 Consolidated Balance Sheet ASSETS (Rs. Crores) Mar-23 Mar-22 EQUITY AND LIABILITIES(Rs. Crores) Mar-23 Mar-22 Non-current assets Equity Equity share capital 23.0 23.0 Property, plant and equipment 139.3 138.6 Other equity 957.2 933.9 Capital work-in-progress 7.3 2.0 Total equity 980.2 956.9 Right of Use Assets 16.3 15.4 Intangible assets 1.1 1.5 Non-current liabilities Investment in Associates 12.8 12.1 Financial liabilities Financial assets Borrowings 1.7 0.8 Investments 102.1 88.8 Lease liabilities 0.2 0.1 Loans 41.1 26.4 Other financial liabilities 66.8 7.1 Others 25.0 79.1 Provisions 32.4 36.1 Non-financial assets 25.0 10.5 Government grants 2.7 3.4 Net employee defined benefit liabilities 0.9 1.6 Sub-total -Non-Current Assets 369.8 374.4 Deferred tax liabilities (net) 1.2 2.9 Sub-total -Non-current liabilities 105.8 51.9 Current assets Inventories 285.9 220.1 Current liabilities Financial assets Financial liabilities Investments 224.6 212.8 Borrowings 345.2 269.2 Investment in trust - - Trade payables 163.9 192.4 Loans 20.7 10.0 Lease liabilities 0.4 0.9 Trade receivables 471.8 557.7 Other liabilities 42.3 13.0 Government grants 0.7 0.7 Cash and cash equivalents 59.9 10.5 Net employee defined benefit liabilities 1.4 1.8 Other bank balances 146.2 76.2 Current tax liabilities (net) 2.7 0.8 Other financial assets 13.8 19.3 Provisions 8.1 10.3 Non-financial assets 69.4 31.0 Non-financial liabilities 11.3 14.2 Sub-total -Current Assets 1,292.2 1,137.6 Sub-total -Current liabilities 576.0 503.3 TOTAL -ASSETS 1,662.0 1,512.1 TOTAL -EQUITY AND LIABILITIES 1,662.0 1,512.1 40 As per IND-AS Genus Power Infrastructures Limited CIN: L51909UP1992PLC051997 Mr. Ankit Jhanjhari ankit.jhanjhari@genus.in www.genuspower.com Strategic Growth Advisors Pvt. Limited CIN: U74140MH2010PTC204285 Mr. Shogun Jain / Mr. Parin Narichania shogun.jain@sgapl.net / parin.n@sgapl.net www.sgapl.net 41