GE Power India Limited

Prashant Jain

MANAGING DIRECTOR – GE POWER INDIA LIMITED

Yogesh Gupta

CHIEF FINANCIAL OFFICER &

Vinit Pant

CHIEF COMMERCIAL OFFICER – GE POWER INDIA LIMITED

Raj Raman

EXECUTIVE - PROJECTS PORTFOLIO

Venkatesh Rao

GE POWER INDIA LIMITED

Raj Raman Our Executive

Projects Portfolio, Mr. Venkatesh Rao

1%

m inflation another major concern is rise in global carbon dioxide emissions. COP27 has predicted 1% increase in CO2 emissions with India’s growth projected at 6% for 2022. After the pandemic the fo

6%

xide emissions. COP27 has predicted 1% increase in CO2 emissions with India’s growth projected at 6% for 2022. After the pandemic the fossil fuel consumption has grown with major spikes seen in co

8 gigawatt

meet the peak demand. Though the pace of growth of renewable capacities is high with almost 7 to 8 gigawatt of capacity addition it is not able to meet the peak demand especially with LNG prices rising glo

11.9%

a reflects significance of thermal power plants. The overall power generation in India has surged 11.9% from a year ago and coal based generation was up 12.8%, so that is the general scenario and the m

12.8%

erall power generation in India has surged 11.9% from a year ago and coal based generation was up 12.8%, so that is the general scenario and the market we are seeing. I would hand over to Vinit to give

rs,

ices, and to have a right mix of EP and EPC projects, and also grow industrial and private customers, so we have achieved success on all these three pillars in this quarter which you will see in the t

47%

top part of the slide. We have a significant order this quarter for FGD, so still services is at 47% in the order mix. EPC versus non-EPC we have 100% we have done non-EPC project which is again ali

100%

er this quarter for FGD, so still services is at 47% in the order mix. EPC versus non-EPC we have 100% we have done non-EPC project which is again aligned with our strategy and we have a higher intake

82%

s again aligned with our strategy and we have a higher intake of private and industrial orders at 82%. So on these three counts we are aligned to our strategy in this quarter. As far as orders are co

2.5x

As far as orders are concerned again it has been a good quarter, our order intake has gone up to 2.5x times of what we achieved in the same quarter last year. I will talk about the FGD order which we

Rs.1.31 billion

GD order which we have got this quarter from Adani this is for that Udupi project, value is about Rs.1.31 billion, so again this order is perfectly aligned with our strategy where we want to focus on cash accr

42%

this quarter for FGD. Also I would like to point out that for services again our orders are up 42% if we compare with the same quarter last year and we also have improved profitability of orders.

“EPC versus non-EPC we have 100% we have done non-EPC project which is again aligned with our strategy and we have a higher intake of private and industrial orders at 82%.”

“I will talk about the FGD order which we have got this quarter from Adani this is for that Udupi project, value is about Rs.1.31 billion, so again this order is perfectly aligned with our strategy where we want to focus on cash accretive deals, which gives us good margins and positive cash flows so this is perfectly aligned with that strategy and this is a significant order for us which we have booked in this quarter for FGD.”

“Overall we have a very robust pipeline of active opportunities both for FGD and services going forward and we think we should really build up on this going forward.”

“This came primarily due to lower volume, project cost escalations, inflation and execution challenges at site and Solapur fire incident which required a provision of Rs.78.7 Crores.”

“This drives one important aspect around the payment terms which are in the current part of the portfolio of NTPC which is we are executing at this point of time where the payment terms are back loaded and they kind of come to us in the latter part of the cycle of project cycle.”

“I want to also highlight one key accomplishment which we had in terms of the Unchahar project the completion of Facilities which we achieved in the month of August and this has been a major accomplishment for the customer as well as for your teams in this quarter.”

“Going forward our focus will continue to see that we don’t have anymore margin degradation at this point of time on this GE portfolio, complete the milestones on a continuous basis and complete the performance guarantee test for the Unchahar stage 4.”

“We are right sizing the factory and in this November to December quarter we will be launching and executing upon the VRS scheme for the workers and that is for the contract workforce and that part is in continuation with strategy to right size the factory for them that we see going forward.”

“Operation challenges that we have gotten control, continue to focus on yields and last but not the least right size Durgapur to ensure we are able to have the right size of the operations as we move into the next year.”

“Prashant said that we take the cost update so that we do not anticipate cost escalations and see more stability going forward overall.”

Prashant Jain

23

Moderator

9

Vinit Pant

8

Aditya Shah

8

Hina Parekh

6

Yogesh Gupta

5

Tara Kaur

5

Mohit Kumar

5

Ramesh

4

Mandira S

4

Prashant Jain

Thank you. Very good evening, everyone. A warm welcome to all of you and thank you for joining us in the Q2 and first half 2022-2023 earnings call. I also welcome my team who has joined me to discuss the financial and operating performance of the company. I have Mr. Yogesh Gupta, our CFO and Whole Time Director, Mr. Vinit Pant our Chief Commercial Officer, Mr. Raj Raman our Executive - Projects Portfolio, Mr. Venkatesh Rao and my team with me. I would like to begin with a brief on the global economic situation. The global economy is going through a turbulent time as economists across the world are predicting recession following significant consumer demand slowdown. In a bid to battle the soaring inflation the central banks of major economies have raised benchmark interest rates in the last two quarters. Though these are indications of inflation cooling down following actions taken by the central banks it has impacted the consumer demand as evident from international trade data. Apart f

Vinit Pant

Thank you Prashant and good evening everyone. I will take you through the slide on the business uptake for this quarter. So I will start by saying that this has been a good quarter for us both in terms of the progress we have made on the strategy part where our focus has been on three main pillars to grow services, and to have a right mix of EP and EPC projects, and also grow industrial and private customers, so we have achieved success on all these three pillars in this quarter which you will see in the top part of the slide. We have a significant order this quarter for FGD, so still services is at 47% in the order mix. EPC versus non-EPC we have 100% we have done non-EPC project which is again aligned with our strategy and we have a higher intake of private and industrial orders at 82%. So on these three counts we are aligned to our strategy in this quarter. As far as orders are concerned again it has been a good quarter, our order intake has gone up to 2.5x times of what we achieved

Yogesh Gupta

Thank you Vinit. Good evening all and thank you very much for joining today to discuss our financial performance for Q2 of FY2022-23. The revenue for Q2 stood at Rs.427.8 Crores down from Rs.732.1 Crores in the corresponding period of last year due to lower order intake in the past few years and cost update for percentage of completion projects. Moving on to our profits, this quarter we have had a loss before tax of Rs.112.6 Crores against a profit of Rs.50.8 Crores in the corresponding period of last year. This came primarily due to lower volume, project cost escalations, inflation and execution challenges at site and Solapur fire incident which required a provision of Rs.78.7 Crores. This provision has been made and would be reversed as and when we get the insurance claim accepted and approved by the insurance company. Moving on we will look at the order intake numbers which just Vinit has shared we have received orders worth Rs.248.3 Crores against Rs.97 Crores in the corresponding

Raj Raman

Thank you Yogesh. Good evening everyone. I would like to kind of walk you through a few updates on the FGD portfolio execution status at this point of the time. From the left you will see two bar graphs which basically represent the revenues which we have so far accomplished and the cash which we have against that received and this is an important aspect which I would like to kind of take a few minutes and dwell upon. The fact being we have more than 83% revenues versus the cash which is at least 64% almost 20% points lesser than that. This drives one important aspect around the payment terms which are in the current part of the portfolio of NTPC which is we are executing at this point of time where the payment terms are back loaded and they kind of come to us in the latter part of the cycle of project cycle. This has been one major aspect around this and that plays out. I will come back on the challenges part of it. I want to also highlight one key accomplishment which we had in terms

Prashant Jain

Thank you Raj. So to summarize we are moving in the right direction of the strategy with the business mix of developing industrial customers, growing more service business like FGD and EPC projects to give us the portfolio. The second area that we wanted to touch upon was the execution lever. It is important we will continue to focus as Raj just mentioned ensuring that we deliver the operations. The third point that I wanted to highlight which we have also mentioned in the notes about Durgapur. We are right sizing the factory and in this November to December quarter we will be launching and executing upon the VRS scheme for the workers and that is for the contract workforce and that part is in continuation with strategy to right size the factory for them that we see going forward. All in all good mix and order intake we see some turnaround there. Operation challenges that we have gotten control, continue to focus on yields and last but not the least right size Durgapur to ensure we are