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The company held its AGM on 22nd July 2015 and was addressed by Mr. Patrick Ledermann Vice Chairman and MD
Key Highlights
The company has an order book position of about Rs 5170 crore as on Mar'15 as compared to about Rs 5460 crore as on Mar'14. Lower order book is as a result of lower number of orders in Thermal, hydro and renewable power projects in India. The order book is nearly 2 times its sales. However the benchmark is not correct, as the company is operating at lower capacities and can generate much higher sales at given capacity.
About 90% of India's 12th 5 year plan is based on super critical technology. Alstom India already has a localized base for implementation of super critical technology orders in Power sector.
As per the management in this 5 year plan, India's Thermal power is going to be dominated by ultra super critical technology. Alstom India has entire Boiler, Turbine and Generator technology ready in place to serve this upcoming market.
Alstom India provides EPC services to gas based power plants both in India and worldwide. Exports business of the services will be much higher in the coming years to come.
The company also supplies coal mills to cater to grading requirements of different types of coals. While Indian market moved slowly in FY 2014, internationally, company was able to supply to many countries.
Alstom Parent has the capability and technology to manufacture the Turbines used in Nuclear Power projects. The Parent as and when, during the course of time, will install the manufacturing capabilities in Alstom India, in line with the Make in India concept.
The company has reduced its exports in line with focusing more on domestic businesses. However, if the domestic market continues to remain sluggish then company will focus more on exports of services and products. It has all the technology and manufacturing base ready to meet the demand.
The company is hopeful of orders from SEB's to kick start soon and capex on power generation side should start from H2 FY'16 onwards. Both Central and State government are working on improving the health of SEB's and some concrete results should come in before Mar'16.
Overall, management is optimistic about increase in spending in power generation segment and increase in order book, as the year FY 2015-16 spans out further.
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