It was “services” rather than “new build” that dominated the order intake of GE Power India Ltd, during FY21, according to a recent investor presentation.
The services segment accounted for 55 per cent of the order inflow in FY21, as opposed to just 11 per cent in FY20. The “new build” segment correspondingly had a lower share of 45 per cent in FY21, down from 89 per cent in FY20.
GE Power India saw a significant drop in new order intake in FY21, at Rs.1161.20 crore, as against Rs.3661.50 crore in FY20. This decline was attributed to COVID, import regulations and slow customer decisions.
All the same, revenues grew by a solid 37 per cent reaching Rs.3,343.10 crore in FY21 from Rs.2,445.90 crore in FY20. This growth was largely due strong order execution during FY21.
As of March 31, 2021, the outstanding order book position was Rs.5,410.70 crore, corresponding to 1.5 years of revenue.
GE Power India is expected to benefit from the FGD (flue gas desulphurization) business as NTPC and several state power generation utilities are expected to float FGD-related tenders in the coming years. It is understood at GE Power India Ltd has so far been awarded 10 FGD projects with an aggregate value of Rs.4820 crore, accounting for most of the company’s outstanding order book position.
It may be recalled that parent company GE has completely withdrawn itself from the coal business – be it services or new build. However, GE Power India intends to stay in the FGD business and will thus have to develop its own competency, without any support from parent company. (See related story)
