Analyzing Genus Power Infrastructures Limited’s (NSEI:GENUSPOWER) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess GENUSPOWER’s recent performance announced on 31 March 2017 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for Genus Power Infrastructures
Despite a decline, did GENUSPOWER underperform the long-term trend and the industry?
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to examine various companies on a more comparable basis, using the latest information. “For Genus Power Infrastructures, its “, most recent bottom-line is ₹645.1M, which, relative to the previous year’s figure, has declined by -27.58%. Since these values are fairly short-term thinking, I’ve created an annualized five-year value for Genus Power Infrastructures’s earnings, which stands at ₹574.6M. This means that even though earnings growth was negative from the previous year, over the longer term, Genus Power Infrastructures’s profits have been growing on average.
How has it been able to do this? Well, let’s take a look at whether it is merely because of an industry uplift, or if Genus Power Infrastructures has experienced some company-specific growth. In the last few years, Genus Power Infrastructures expanded its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Viewing growth from a sector-level, the IN electronic industry has been growing its average earnings by double-digit 21.04% over the previous year, and a less exciting 3.64% over the past five. This means that whatever tailwind the industry is benefiting from, Genus Power Infrastructures has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies are profitable, but have unpredictable earnings, can have many factors impacting its business. I recommend you continue to research Genus Power Infrastructures to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for GENUSPOWER’s future growth? Take a look at our free research report of analyst consensus for GENUSPOWER’s outlook.