Second quarter results from Alstom T&D India Limited

Alstom T&D India Limited recently announced its financial results, for the second quarter and half year ended September 2012, following approval by the Company’s Board of Directors.

For the quarter ended September 30, 2012, Alstom T&D India achieved a strong growth in orders, up by 61% over the preceding quarter, leading to a backlog of Rs. 6,100 Crores, up by 34%, against September 2011. Operating Profit was lower at 1.4%, compared to 7% in the preceding quarter, due to low market prices and provisioning of Rs. 30 Crores for some of the customers, due to their perceived weak financial position.

During the quarter, Alstom announced signing of the 800 kV HVDC Champa-Kurukshetra project along with group Company, with Power Grid. Alstom T&D India’s share in the contract was around Rs. 1,080 Crores.

Operating income fell to 4.2% during 6 months period ended September 30, 2012. Sales growth was impacted, despite healthy backlog, with some customers unable to keep pace with their projects due to multiple issues related to difficulties in land procurement, fuel shortages and project clearances.

The company also saw some major successes by commissioning India’s first Digital Solution for GETCO’s 220 kV substation. The world’s first 1,200 kV double knee type Disconnector was inaugurated at Alstom’s Padappai factory for installation at Power Grid‘s national test station at Bina (Madhya Pradesh). Several 765 kV substations were also commissioned, reinforcing our leadership in the EHV market.

Commenting on the results, Rathin Basu, Managing Director, Alstom T&D India said: “Despite falling market prices and low capex investment, Alstom T&D India has improved its position in the high-end of the market in 800 kV HVDC, 765 kV AIS and 400 kV GIS technologies. We have good level of backlog to cope up with the market pressure and we are reinforcing our efforts to further optimise our operations.”