GE Power India Ltd has maintained the order inflow in Q3 (October to December) of FY21 as compared with that in the immediately preceding quarter.
In an investor presentation filed on the stock exchanges, GE Power India said that it received new orders worth Rs.221.60 crore in Q3 of FY21, more or less unchanged from the Rs.221.10 crore in Q2 of FY21.
However, combined orders received in Q2 and Q3 of FY21 (which is six months from July to December), at Rs.442.7 crore were less than the Rs.532.1 crore of orders landed in Q1 (April to June) of FY21. It is interesting to observe that Q1 (April to June) of FY21 was generally speaking the worst-affected quarter with respect to the pandemic.
The presentation observed that there has been a shift in orders due to COVID-19 pandemic and because of import restrictions. It also said that “slow customer decisions” have been impacting ordering. However, the company’s market share is largely intact, the presentation said.
As of December 31, 2021, the outstanding order book position of GE Power India was around Rs.6,000 crore.
Cumulative Performance
During the first three quarters of FY21 (April to December), combined order inflows stood at Rs.974.8 crore which were a whopping 66 per cent lower than the comparable Rs.2,858 crore in the same period of FY20.
On the other hand, revenue from operations in the first nine months of FY21, at 2412.5 crore was 41 per cent higher than the Rs.1,713.2 crore in the like period of FY20.
Higher revenues in the April-December period of FY21 were largely on account on record revenues of Rs.1,093 crore in Q3 of FY21. This, in turn, was due to strong order backlog execution in that quarter, the presentation observed.
Revenue Mix
The high revenue of Rs.1,093 crore seen in Q3 of FY21 came largely from government-related works. In the total revenue of Q3 of FY21, government contracts had a share of 58 per cent, while private sector accounted for the remaining 42 per cent. When seen from the classification of nature of jobs, it was “new build” orders that accounted for maximum revenue in Q3 of FY21. New build works had a share of 77 per cent in the total revenues of Q3FY21 while the remaining 23 per cent came from services. Further EPC works had a share of 61 per cent in Q3 revenues while non-EPC commanded a 23 per cent share.
Major Orders
The first nine months of FY21 were characterized by some interesting orders for GE Power India. The company landed India’s first ever semi-dry FGD (flue gas desulphurization) order, de-NOx orders from NTPC and UPRVUNL, and a order for repairs to a Chinese OEM steam turbine from Adani Power.
(Photo sourced from ge.com is for illustration only)
