Thanks for the response.
As per my understanding, role of AMISP requires financial back up as installing millions of meters and infrastructure around it is no joke and hence instead of borrowing capital, they went for this JV.
It appears that Genus will act as a supplier of smart meters and as a system integrator to this JV, while the monthly installments will be collected by this JV and this revenue might not show up in the Genus financial results, since it being an associate company.
In such scenario, Genus will not be having greater margin since you are supplying to your associate company only, which might result into the single digit ROE. And this is my main concern regarding making any serious investment decision in this company.
Disclaimer : Not invested but trying to study the opportunity
| Subscribe To Our Free Newsletter |
