GE Vernova T&D India Ltd poised for long-term success

The Indian power sector is not a national story but a part of the global trend towards energy transition. The integration of renewables into the energy framework is a part of the rapidly evolving global ecosystem where GE VERNOVA T&D INDIA LTD has built itself to be a key player in the power industry and capitalise on emerging opportunities.

The incredible growth story of India’s power sector over the last decade is the envy of all foreign countries with the renewable energy capacity increasing to nearly 210 GW from only 74 GW in 2014 and well on track to achieve its ambitious target of 500 GW by 2030. The power sector in India presents an incredible opportunity and its growth is fundamentally driven by three key pillars.

The energy transition is creating significant opportunities for T&D companies as they work to integrate renewable energy sources into the grid, modernise the infrastructure and deploy advanced technologies like smart Grids and energy storage solutions. The country’s per capita energy consumption is significantly lower than the global average but as the economy grows and living standards improve, the demand for electricity should increase driving substantial growth in the sector.

The new energy emerging demand should also come with the introduction of electrical vehicles, green hydrogen, data centres and many other innovative technologies.

These should accelerate the growth of the power sector in the country. As the sector requires robust and reliable power infrastructure, this will ultimately create significant opportunities for GE Vernova. Since, the central electricity Authority (CEA) has been actively working to enhance the cyber security of India’s power grid , therefore digital and software applications have become critical to the grid as they help and ensure reliable and secure power network.

The company systems help move electricity from variable renewable resources in remote locations to demand centers. The grid orchestration enables utilities to navigate the complexity with the sustainable energy grid. GE Vernova T&D India Limited ( formerly GE T&D India Ltd ) has been accelerating the energy transition in the country by providing 50% of the power flow monitoring through its digital solutions.

The company provides grid system integration, including high voltage direct current HVDC , transmission systems, etc. GE Vernova also produces software applications for grid automation and power transmission recruitment like transformers, circuit breakers and switch gears. GE VERNOVA is also providing electrification software. The company covers the full range of voltages up to 765KV including HVDC with a strong domestic manufacturing base across facilities in Vadodara, Gujarat, Hosur and Paddapal in Tamil Nadu, Pallavaram in Chennai and Sector 83 and 128 in Noida , UP.

The future of the company is very bright as the country needs more electricity and the per capita consumption kWh should increase from around 1327 to 2250 by the year 2030. Large projects in HVDC, Stacom, Digital and Green energy should accelerate the energy transition in the country and increase the investment substantially over the next five years. Strong global demand provides tremendous export opportunity, delivering higher margins to GE Vernova.

The company is focusing on electrifying the world while simultaneously decarbonising it with zero to lower carbon technology. The key financial highlights of H1FY25 performance of the company is superlative with orders up 173%, revenue up 46%, EBITDA improving from 9.4% to 19.5% on the back of a strong order book , efficient working capital management, better execution and higher volumes. The stock price of GE VERNOVA T&D INDIA LTD is presently quoting at Rs 1765 on the bourses and is an excellent long term buy for portfolio investors.

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