Co was repr by Laurent Demortier, CEO & MD.Highlights of call by Capital Mkt
Consolidated order backlog as end of Sep 2015 was Rs 8428 crore with order intake for the quarter being Rs 2886 crore.
Order intake in Q2FY16
India Non India CG global
Power Systems 714 1636 2350
Industrial 452 84 536
Total 1166 1720 2886
Order Backlog as end of Sep 2015
India Non India CG global
Power Systems 3145 4607 7752
Industrial 553 123 676
Total 3698 4730 8428
Figures in Rs Crore
The company is in the process of monetizing its investment in non strategic business as well as assets. In this regard on Oct 8, 2015, the BoD have approved divestment of its entire 50% stake (investment of 600000 equity shares of RS 10 each) in medium voltage business i.e. CG Lucy Switchgear (CG-Lucy)to W Lucy & Co of UK for a consideration of Euro 5.50 million. Similarly the company with effect from Aug 12, 2015, has terminated the Distribution Franchisee Agreement (DFA) with MSEDCL for Jalgaon Circle Area.
On Oct 16, 2015, the BoD have also approved entering into definitive agreement for the sale of a portion of its land in Kanjurmarg, Mumbai admeasuring approx 53000 sft for an aggregate sum of Rs 496.48 crore.
International power systems (IPS) business continues to be impacted by ongoing divestment process. The buyer has completed due diligence of of all plants and expects definite offer by end of Dec 2015.
Automation orders backlog as end of Sep 2015 was Rs 831 crore with order intake in Q2FY16 being Rs 441 crore. Revenue from Automation in Q2FY16 was Rs 197 crore, which is flat compared to corresponding previous period.
Proceeds from monetization of non core business/assets will be used to reduce debt at international operations.
Lower EBIT for consumer business in Q2FY16 is largely due to the company accounting an amount of Rs 15 crore towards certain cost heads which was hitherto accounted under unallocated under consumer biz.
Exports revenue in Q2FY16 was Rs 329 crore which is higher compared to Rs 317 crore in Q2FY15 and Rs 133 crore in Q1FY16. Exports order backlog is Rs 883 crore.
Kanjurmarg – Out of 34 acres the company initially sold 8 acres and now has sold another 13 acres. Nothing more will be sold in the next 12-18 months.
Two quarters from now the high rating transformer orders will start contributing to topline and that will improve the India power system margins from FY17 onwards.
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