You are here » Home » Companies » Company Overview » ICSA (India) Ltd

ICSA (India) Ltd.

BSE: 531524 Sector: IT
NSE: ICSA ISIN Code: INE306B01029
BSE LIVE 15:40 | 22 Aug 2.69 0.08
(3.07%)
OPEN

2.61

HIGH

2.86

LOW

2.55

NSE 15:31 | 22 Aug 2.65 0.05
(1.92%)
OPEN

2.70

HIGH

2.75

LOW

2.55

OPEN 2.61
PREVIOUS CLOSE 2.61
VOLUME 6965
52-Week high 3.85
52-Week low 2.30
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.61
CLOSE 2.61
VOLUME 6965
52-Week high 3.85
52-Week low 2.30
P/E
Mkt Cap.(Rs cr) 13
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ICSA (India) Ltd. (ICSA) - Chairman Speech

Company chairman speech

ICSA (INDIA) LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT Even as revenues increased 10.26 per cent, EBIDTA declined 9.23 per cent and post-tax profit declined 20.29 per cent. This was the result of a number of external factors: * The government replaced the erstwhile APDRP with the restructured APDRP, implemented through Power Finance Corporation (PFC). PFC empanelled system integrators as primary customers, who outsourced assignments to network solution providers, GIS solution providers and meter data acquisition and solution providers, among others. So, while ICSA bid directly to customers under the erstwhile APDRP segment, it is now required to bid to system integrators in the new R-APDRP environment. This has considerably slowed new order inflow in the ESS segment for the Company. * The new structure slowed the floating of new tenders in the technology segment, affecting ESS segment growth. 2009-10 in review Your management responded with speed to these realities through various initiatives: IPS segment: Unlike the ESS segment, the IPS segment is independent of nodal agencies. The Company continued to build capabilities to execute larger projects in this segment. It graduated from 11 kV, 33 kV and 220 kV projects to 400 kV transmission projects, executing its first 400 kV project in 2009-10. It focused on increasing project size. Going ahead, we expect to expand in 400 kV transmission sub-station and lines projects. ESS segment: We strengthened our embedded solution and software services to generate larger volumes in the coming years through the introduction of new products. The Company tied up with Dongfang Electronics Company Limited for SCADADMS projects, among other initiatives like renewing our sales strategies and increasing the number of channels. Strategic tie-up: We tied up with Dongfang Electronics Company Limited for SCADA based applications in the Distribution Management System (DIMS). Dongfang possesses a rich experience in the implementation of SCADA-based technologies the world over. So, while ICSA will provide the hardware, engineering, installation and commissioning and support, Dongfang will provide the required software. SCADA empanelment: Under the R-APDRP, a new structure called SCADA Implementation Agencies (SIA) was created. SIAs will be eligible to bid directly for SCADA-based projects. During the year under review, the consortium of DFE with ICSA has been empanelled as a SCADA implementation agency by PFC. Strengthening SMART meter capacity: Following the acquisition of a meter manufacturing unit, we scaled production capacity from 25,000 meters a month to 150,000 meters a month. This capacity investment will enable us to scale our business through the wider introduction of SMART meters and reduce costs through a backward integration into the direct manufacturing of ESS products. SMART meter certifications: Our energy meters received certifications from various NABL-accredited testing laboratories, enabling us to bid for tenders by the utilities. New product development: Our R & D department developed new products and newer versions of existing products with enhanced communication capabilities, improving product acceptability. Completion of PQMS project: We completed a pilot project for installing a power quality management system (POMS) in Baroda for MGVCL under the DRUMS project. All our products in the project are running successfully and we expect larger orders for the same. Industry overview In India, more than a quarter of the power generated (these estimates vary on the higher side from state to state) is lost due to technical and commercial reasons. The government targeted a reduction in commercial losses from 23 per cent to 5 per cent in the Eleventh Five Year Plan. As this progressively transpires, distribution companies will finally be liquid enough to re- invest in strengthening their networks. The urgency to reduce commercial loss represents the basis of ICSA's existence, which possesses products and services to automate distribution companies. There is a second basis for the Company's existence. With a revised projected power capacity addition of 90,000 MW in the Eleventh Five Year Plan and more than 1,00,000 MW in the Twelfth Plan, India will need to reinforce its T & D infrastructure. ICSA's SCADA-DMS implementation is just the product for this sensitising environment. Our state-of-the art introduction encompasses all networks and, in doing so, can reduce aggregate technical and commercial (AT & C) loss and increase energy management efficiency. This SCADA opportunity is estimated at Rs. 2,000-2,500 crore in three years. Our Company is among the few in India to possess this SCADA capability. Going ahead, the country's proposed implementation of SMART grids will facilitate a more efficient electricity flow over a shared, interoperable network. The implementation will comprise hardware and software applications seamlessly integrated to ensure real-time and uninterrupted communication with each other. The result: intelligent bi-directional digital networks. By the virtue of its established presence in the T#tD automation and infrastructure space, ICSA is expected to drive its second phase of growth. Preparing for the future As R-APDRP outlay translates into actual disbursement, the power sector will be automated strengthening the market for ICSA's embedded products, SCADA-DMS solutions and SMART energy meters in the following ways: * Our embedded products will cater to the urgent need for reducing T &D losses in India. Planned capacity additions for transmission lines Unit At the end Additions of the Tenth planned under the Five Year Plan Eleventh (March 2007) Five Year Plan 765KV Ckm 1,704 5,428 HVDC+/- 500 KV Ckm 5,872 5,206 HVDC 200KV monopole Ckm 162 0 400 KV Ckm 75,722 49,278 230/220 KV Ckm 114,629 35,371 Total Ckm 198,089 95,283 [Source: CEA] Substation capacity addition under the Eleventh Five Year Plan Unit At the end Additions of the Tenth planned under the Five Year Plan Eleventh (March 2007) Five Year Plan HVDC BTB MW 3,000 - HVDC bipole+monopole MW 5,200 6,000 HVDC terminal capacity MW 8,200 6,000 765 KV MVA 2,000 51,000 400 KV MVA 92,942 52,058 230/220 Now MVA 156,497 73,503 Total AC sub-station MVA 251,439 176,561 capacity [Source: CEA] * Our empanelment for SCADA solutions by PFC will enhance revenues, leveraging our existing experience in the implementation of automating equipment. * Our growing production of SMART meters will help reduce AT& C losses. In the IPS segment, our projects rollout ranged from 11 kV to 400 kV and we expect to graduate to bigger projects and overseas assignments in sub- station deployment. Value ICSA entered the business of infrastructure projects in 2000 and embedded services in 2004, reporting a 97.36 per cent CAGR in revenues in the five years leading to 2009-10. The Company is now building capabilities to graduate to the next league. This should enable it to emerge as a large integrated power solutions organisation in the coming years. G. Bala Reddy Chairman and Managing Director