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GE T&D India Ltd.

BSE: 522275 Sector: Engineering
NSE: GET&D ISIN Code: INE200A01026
BSE 15:35 | 17 Oct 188.00 16.90






NSE 15:29 | 17 Oct 188.00 16.40






OPEN 170.30
52-Week high 331.35
52-Week low 124.00
P/E 35.95
Mkt Cap.(Rs cr) 4,814
Buy Price 182.20
Buy Qty 1000.00
Sell Price 191.95
Sell Qty 250.00
OPEN 170.30
CLOSE 171.10
52-Week high 331.35
52-Week low 124.00
P/E 35.95
Mkt Cap.(Rs cr) 4,814
Buy Price 182.20
Buy Qty 1000.00
Sell Price 191.95
Sell Qty 250.00

GE T&D India Ltd. (GET&D) - Director Report

Company director report

The Directors are pleased to present the sixty-second annual report together with theaudited financial statements of the Company for the financial year ended March 31 2018.


(Rs. millions)
Particulars Year ended March 31 2018 Year ended March 31 2017
Sales and Services (Net) 43858 42596
Operating Profit before Finance Cost 4071 921
(As percentage of gross sales) 9% 2.2%
Finance Cost 883 1654
Profit Before Tax 3188 (733)
Tax Expense 1100 134
Other Comprehensive Income net of Tax 30 (40)
Total comprehensive income / (expense) after tax 2118 (907)
Balance brought forward from previous year 6296 7717
Profit available for appropriations 8383 6850
Proposed Dividend 461 461
Corporate Dividend Tax 94 94
Balance carried forward 7829 6295

Financial results for the year ended March 31 2018 are in compliance with the IndianAccounting Standards (Ind-AS) prescribed under Section 133 of the Companies Act 2013.


The Company has a Dividend Distribution Policy in line with the SEBI (ListingObligations & Disclosure Requirements) Regulations 2015. The Policy is available onthe Company’s website at

Your Directors take pleasure in recommending a dividend of 90% (H 1.80 per share) forevery equity share of face value of H 2/- each for the financial year ended March 312018.

Steady Performance Despite Constant Headwinds

During the year 2017-18 India’s overall GDP growth was seen decelerating to 6.5%but is expected to rise to 7-7.5% in 2018-19. This is primarily due to landmark reformsundertaken by the Government in 2017. The transformational Goods and Services Tax (GST)was launched at the stroke of midnight on July 1 2017. The long-festering Twin BalanceSheet (TBS) problem was decisively addressed by sending the major stressed companies forresolution under the new Indian Bankruptcy Code and implementing a major recapitalizationpackage to strengthen the public- sector banks.

The Power sector today is struggling with 70GW+ of stranded assets due to lack of PPAand coal linkages. This has significantly slowed down the investments in ultra-highthermal capacity addition. However this phenomenon has been largely balanced by thecontinuing investments in the renewable -Solar & Wind space. This shift in generationfuel has also impacted the changing dynamics of transmission and distribution space. As aresult the EHV grid investments of 800kV are now gradually moving towardssub-transmission grids of 220kV and below. This change in voltage profile of the griddemands a new range of product and project solutions in the market.

In recent years India has been witnessing falling solar tariffs. While this has apositive impact on the cost of procuring power it has also initiated certain discussionsabout renegotiation of already signed power purchase agreements (PPAs) by certain states.Parallelly the Solar developers were also dealing with the revised tax imposed on Solarpanels which resulted in supply chain issues and subsequent project delays by thedevelopers. Due to this uncertain environment the solar capacity addition during the yearfell significantly. However the overall capacity addition plan is on track and expectedto see more momentum in 2018-19.

During the year Government of India announced the ‘Saubhagya’ scheme toprovide energy access to all by last mile connectivity and electricity connections to allremaining un-electrified households in rural and urban areas to achieve universalhousehold electrification in the country. This will ensure that State Utilities strengthentheir T&D networks and improve operational efficiencies to cater to the increasedconsumer base.

Industry in India is today seeing resolution of NPAs and stressed balanced sheets beingovertaken by new investors. This consolidation and resolution in the industry is expectedto improve capex in the coming years and give rise to additional demand for power.

Overall despite the extremely challenging market your Company successfully achieved abalanced portfolio of orders resulting in sustained market leadership and improvedoverall performance. In addition your Company ensured a healthy backlog of orders.

Preferred Choice of Central and State Utilities

Your Company continues to be the preferred choice for T&D equipment by central andstate transmission utilities across the country. The central transmission utility PowerGrid Corporation of India Limited (Power Grid) chose your Company to provide end to endturn key solution for 765kV /400kV air-insulated substations at various sites acrossJharsuguda Raipur Patna and Siliguri. These switchyards will further strengthen the Gridevacuation infrastructure in the eastern part of the country.

During the financial year under review your Company was awarded two contracts byDoosan Power Systems for developing 765kV/400kV Gas insulated substations for 2*660 MWThermal Power Plants at Jawaharpur and Obra in the state of Uttar Pradesh. Thesesubstations will be located at Sonebhadra and Etah and shall contribute significantlytowards bringing electricity to state of Uttar Pradesh which is today facing acute powershortage. The products shall be supplied from our local manufacturing facilities at HosurPadappai and Vadodara.

Expanding in Neighboring Countries

The increasing demand of power in Bangladesh demands a robust system to handle itsexpanding power networks. cut inefficiencies and reduce power outages thereforeTransmission and Distribution systems are expected to play a huge role in making thedesired impact. Based on your Company’s established installed base in Bangladeshyour Company was chosen by Power Grid Company of Bangladesh for upgrading and maintainingNational Load Dispatch Center of the country over next four years.

The Company shall be offering state of the art Energy Management System (EMS) that willhelp the utility infuse efficiencies into the grid and optimize power flow in the country.The SCADA/EMS control center has the capacity to accommodate the grid expansion ofBangladesh for the next eight years. Once upgraded the system will be ready to integratesmart grid technologies such as WAMS (Wide Area Management Solutions) and will also offercyber security technology feature

Upgrading the State Grid Infrastructure

During the year your Company consolidated its expertise in State Grid networks acrossthe country. Your Company was awarded a 400kV/220kV/132kV turnkey gas insulated substationorder by Uttar Pradesh Power Transmission Corporation Ltd. (UPPTCL) at Lucknow HardoiRoad.

The State of Chhattisgarh chose your Company to execute a 400kV/220kV substation atDhamtari Jagdalpur which will further expand the intra-state Grid capabilities. Duringthe year your Company won several projects across the states of Gujarat RajasthanTelangana Bihar and Orissa to provide end to end turnkey solutions and products for gridstrengthening and expansion of inter-intra state grid networks.

Your Company’s performance over the years with Private developers in thetransmission space ensured that it was awarded a critical project by Sterlite Power GridVentures Ltd. The project requires commissioning of 400/132kV AIS substation equipment atSurajmaninagar and PK bari. This project is critical part of strengthening of transmissionand distribution system for North East Region. One of the major products to be suppliedfor the project is 125 MVA power transformers. These will be manufactured at yourCompany’s Naini facility and transported to Agartala.

Though the conventional Power generation sector is seeing limited power capacityaddition your Company was the first choice by ALSTOM Bharat Forge Private Ltd. To developthe 3*550 MW Ghatampur thermal power project evacuation network.

Preparing India for Higher Renewable Mix

The Government of India has set ambitious target to significantly grow India’srenewable energy capacity and shift to a cleaner and greener energy mix by 2020. YourCompany had anticipated the opportunity and was fully prepared to manage the challenges ofrenewable power to the grid.

The surge in renewable energy in the country demands efficient and reliable gridevacuation network to integrate the renewable energy with the National Grid. Your Companycontinues to contribute to this initiative by developing grid evacuation network for Solarparks. During the year your Company was awarded orders for full turnkey basis of 2*40 MWsolar in the state of Orissa by Pan India Infra projects.

Building on the references in Solar execution your Company also won 4*40 MW Solarprojects by Essel in the state of Uttar Pradesh and Orissa.

Making Inroads into Oil & Gas and Refinery Upgradation Space

In the industrial space your Company won a contract from HPCL Mittal Energy (HMEL) fordevelopment of 400/66kV GIS MRSS (Main receiving substation) at HMEL Bhatinda refinery.The project encompasses design engineering supply testing and commissioning of 12 *400kV gas insulated switchgear bays three phase power transformers and O&M contractpost commissioning. The project will enable your Company to create benchmark in the oil& gas refinery up-gradation space in India.

Services: Enhanced Capabilities for Managing Ageing Grid Assets

Consistent performance of past years and an adequate backlog volume at the end of thisyear continues to assure a solid foundation for Services business.

Grid customers in India are now increasingly investing on training their employees tomanage their T&D assets. The Technical Training Institute of your Company continues toplay a key role for your customers by training their employees on the latest and complextechnologies.

Your Company’s Services business has deep expertise in renovation andmodernization of old substations an area which is getting lot of focus by stategovernments as they prepare to ensure round-the-clock power supply to all households. YourCompany undertook many critical substation jobs modernized them with latest technologyand upgraded them to handle the added generation capacity coming in the grid.

During the year your Company won several contracts from State utilities like KarnatakaPower transmission Bihar State Power Transmission

Gujarat Jammu & Kashmir to maintain and upgrade their aging Grid installed base.

Your Company also executed renovation and modernization across several power generationprojects like National Hydro Power Corporation SJVN And National Thermal Powercorporation. This positions your Services team well in managing future requirements ofupgrading grid infrastructure of ageing power generating plants.

During the year your Company received numerous customer appreciations for the promptand quality services provided by the Service team. As a testimony to its customerorientation the service team was recognized as "Engineering Service Provider of theyear" in the GMR – IGI Airport Awards 2017 for the operation and maintenanceservices provided by the Company at the Delhi International airport. Nothing is moresatisfying than a recognition by customers to know that Service business is on track onits belief that "Customers determine our success".


Fulfilling the Promises Year after Year

Your Company’s rich experience in project execution and determination to deliveron the promises made to our customers has helped your Company reach new landmarks inoperational excellence year after year.

In 2017-18 your Company achieved a major milestone by successfully commissioning Pole 2of Phase 1 of Champa 800kV Ultra High Voltage Direct Current (UHVDC) project transmittingtotal of 3000 MW of power in the system (including Pole 1 commissioned in March 2017)from Champa Chhattisgarh to Kurukshetra Haryana. This is a major milestone in the powerevacuation infrastructure in the country enabling bulk power transfer across the countryand bringing access to the increasing demand regions of north India.

During the year under review your Company demonstrated its expertise in execution ofturnkey projects by commissioning 60 numbers of AIS and GIS substations enabling additionmore of than 13 GW power into the Grid. Main success stories were commissioning of Pole 2(1500 MW) of HVDC at Champa and Kurukhetra 765kV bay extension projects for Power Grid atWardha Vindhyachal Jaipur and Gwalior within twelve months completion of 400kV / 220kVSubstation including 500 MVA transformer in four months and commissioning of transformerpackage for L&T Power at Bheramara in Bangladesh.

Besides your Company also executed and commissioned large number of turnkey projectsfor our esteemed customers that include Power Grid Bihar State Power and TransmissionCompany Limited (BSPTCL) Rajasthan Transmission Co. Ltd (RVPN) Chattisgarh State Power& Transmission Co (CSPTCL) Maharashtra State Electrical Transmission Co. Ltd(MSETCL) Megha Engineering and Infrastructure Ltd (MEIL) Sterlite Energy and others.

Your Company’s transformer factory in Vadodara commissioned three 765kV HVDCtransformers for Champa site seven numbers of 765 ICT and forty-one numbers of 765kVReactors. This includes commissioning of 765kV Transformer and Reactor systems for TBCBswitchyards at Warora and Orai in record time for Powergrid.

During the year your Company’s automation unit at Pallavaram commissioned morethan 1000 bays of new and retrofit Substation Automation systems for ratings ranging from33kV to 765kV.

All your Company’s operations in India be it in manufacturing projects servicesand automation continue to be certified for Integrated Management System. This reinforcesthe quality of the processes of the Company and compliance to the same.



The year 2017-18 witnessed moderate growth in the Transmission and Distribution marketwhich is now gradually moving towards a recovery primarily driven by Government ofIndia’s (GOI) growing investments in renewable power generation and investments aimedtowards upgradation of country’s ageing transmission systems. However the powersector continues to struggle with stranded power generation capacity poor industrialdemand and high AT&C losses in DISCOMs. All such challenges can be met but requireinvestment and adoption of latest technologies across the value chain of power sector.

Power Grid’s Shifting Focus on State Grid Projects

Power Grid the central transmission utility has been consistently investing itscapital expenditure over the last decade in building the EHV-UHV Transmission grid in thecountry. During the year Power Grid’s capex declined significantly due to lack of newsuper-critical generations and the corresponding decline in demand for EHV evacuationgrid. Power Grid is cognizant of the fact that Government of India (GOI’s) strongresolve to provide electricity to all will need strengthening of state grids and last mileconnectivity. States are also increasing investments in their electricity grids andupgrading old transmission systems as they seek to supply round-the-clock electricity tohouseholds and industries. Hence Power Grid is now also developing State grids incollaboration with states.

Emerging Role of States in Enabling ‘Power for All’

As part of a Centre-State joint initiative on 247 ‘Power for All’ Stategovernments have committed to ensuring round-the-clock supply to all households from April2019. Government of India’s (GOI) initiatives such as Integrated Power DevelopmentScheme (IPDS) and Power System Development Fund (PSDF) are encouraging the stateutilities across the country to invest in augmenting their distribution and transmissionnetwork capacities.

Grid infrastructure in states with high degree of renewable generation is expected toscale up rapidly to keep up with the evacuation demands of Solar and Wind power into theGreen Energy Corridor. Telangana Andhra Pradesh Karnataka Tamil Nadu KeralaMaharashtra Uttar Pradesh are some of the key states leading the T&D investments inthis area.

Continued Focus on Renewables

As per the Central Electricity Authority’s National Electricity Plan (2017-22)the anticipated shift from conventional to non-conventional renewable energy may resultinto a slowdown of thermal power projects in the future. This however shall becompensated by the ramp-up in solar driven power generation. This is likely to benefityour Company as the renewable capacity will require integration with nationaltransmission grid while maintaining its stability and robustness. This would furthercreate a demand for Renewable Energy Monitoring and Control Centers (REMCs) along withstability and compensation solutions in various regions of the country.

Growing Energy Needs of Neighboring Countries

Our neighboring countries are growing and so is their need of power. India’sEnergy security policy is leading to shaping up of the SAARC grid with regional linkagesnow getting implemented with Bangladesh Sri-Lanka Nepal and Bhutan. Increasinginvestments in SAARC grids is seeing opportunities for HVDC turnkey products andsolutions.

Improving Policy and Investment Climate

The Industrial sector is now gradually moving towards recovery as it witnessesconsolidation and resolution of Non-Performing Assets (NPAs) through the Insolvency AndBankruptcy Code 2016. We expect that bold moves like these are likely to help theindustry in reviving the demand and pulling fresh investments in the years to come.

The overall investment climate in the country is also moving in a positive directioninvestments across infrastructure and power sector are taking the economy of India to newaltitudes. The transmission sector remains to be at the heart of all these new investmentactivities.

Your Company is closely watching these developments and consistently adopting newstrategies to adapt to the changing market conditions.


With an ambition to be a five trillion-dollar economy within next 10 years Indiangovernment is keen to accelerate the growth of economy at a rate of 8-9% moving forward.This will result into rise in demand of power and hence T&D sector will continue toremain a key lever to achieve this accelerated GDP growth. As on March 2018 India’sper capita electricity consumption stays at a very low level of 1110 kWh. Though on April28 2018 India announced 100% electrification of its villages but close to 31 millionhomes still await electrification. Ministry of Power is keen to achieve 24x7 electricityaccess for the people of country and this will lead to big investments in the Power andT&D sector.

Government of India’s ambitious capacity ramp up in the solar sector is attractinginvestments from private developers NTPC Limited and Solar Energy Corporation of India(SECI). Several states that are rich in renewable resources have launched ambitiousprojects in solar energy generation and solar evacuation transmission network. Efficientand reliable transmission of this renewable power from supplying states like TelanganaKarnataka Andhra Pradesh Rajasthan Tamil Nadu to demand centers across the countrywill require new technology and grid stability systems. Expansion of this additional powergeneration capacity will create new opportunities in the form of additional T&Dinfrastructure in the central as well as in the state grids. Such initiatives are expectedto be largely driven by Inter region strengthen scheme.

As part of South Asian Region energy challenge Government of India is also supportingthe development of inter-regional grid with neighboring countries like Bangladesh SriLanka Nepal Bhutan and Maldives to develop a strong SAARC grid network. Your Company isalready present in these markets and is ready to participate in the future growth of thesegrids.

All the market trends and government initiatives as described here present an array ofgrowth opportunities for your Company and your Company is well positioned to capture therelevant opportunities timely.


The current liquidity situation in the sector coupled with non-resolution of strandedassets of 70 GW are a cause of concern and impacting the pace of investments insupercritical generation. This in turn is impacting investments in extra high voltage(EHV) T&D grids. The low entry barriers for poor technology players in state utilitymarkets will allow short-term players to engage in aggressive and unviable pricing as waspreviously seen in generation space. The slow revival of industrial demand is stallingopportunities in the market.

State Electricity Board DISCOMs though relieved by implementation of UDAY schemes arestill struggling to bring in operational efficiencies and are holding back on investmentsto upgrade the old technology.

Chinese and Korean players continue to be aggressive in the SAARC Grid with aggressivepricing in India Bangladesh and Sri Lanka. The governments both at central and statelevels need to push and support the infrastructure investment and growth. While yourCompany firmly believes that growth is imminent yet the pace of turnaround iscomparatively slow. Your Company is aware of the adverse circumstances and is prepared todeal with the challenges as it has done in the last many years.


The overall business environment is expected to moderately improve in the financialyear 2018-19. As the country goes for National Elections in 2019 the rate at which ordersare being awarded may get impacted for a certain duration. However the Company continuesto have healthy order book of over Rs. 72 Billion as of end of March 2018 and therefore isfairly equipped to sustain these market pressures.


Human Resources

The permanent employee strength of the Company as on March 31 2018 was 2821.

Industrial Relations : During the year labor relations at all the Units remainedcordial. This has helped your Company to promote a culture of trust and high performancewithin the employees.

Diversity : Gender diversity has always been important for your Company. Your Companyunderstands the gender sensitivities and hence providing safe and secured workingenvironment for women always remains a top priority. Company always aims to enrich itsgender diversity while hiring for open positions. The management promotes a diverse workculture wherein fair and transparent employment practices are adopted for gender diversecandidates. Your Company has a strong women network in the organization that acts as aplatform for exchanging views and supporting women in their career growth. Your Companyalso has career focused fast-track programs for women in technical roles of engineeringand R&D.

Succession planning : Management with the support of Human Resources team keeps a sharpfocus on identification of successors for all leadership positions as well as forpositions that require crucial skill sets.

Your Company is focused on increasing the overall organizational efficiency and drivingaccountability. The objective is faster communications and expedited delivery tocustomers.


The Finance function continued to lead drive and enable number of business criticalinitiatives which led to a better performance of your Company. Strong focus on riskmanagement cost optimisation and cash generation through intense operational rigour andfinancial discipline led to an improved working capital management. The Cash focus aroundreceivable and retention collection generated cash from operating activities of Rs.10540million which helped in reducing the borrowing significantly and the Company ended theyear with a positive cash balance of Rs.5321 million. The Credit Rating Agency ICRA hasreaffirmed the long term (AA) and short-term (A1+) ratings indicating a high degree ofsafety regarding timely servicing of financial obligations. The outlook on long termrating has been retained as "Stable".

Your Company having undergone the changes in the accounting and regulatory requirementswith the adoption of Ind-AS Internal Financial Control (IFC) Internal Controls overFinancial Reporting (ICFR) Income Computation and Disclosure Standards (ICDS) etc.Welcomed the decision of the Government to implement Goods and Services Tax (GST) in thecurrent financial year. The adoption and transition w.e.f. July 1 2017 was carried outwith enhancement to the underlying operational processes and IT systems which facilitatemeeting the requirements of the GST Laws resulting in accurate and timely compliances.

Given the efforts to manage and successfully drive the above changes the Financefunction was recognized for their performance and contribution in the financial year.

Investor Relations

Your Company firmly believes and is committed to keep complete transparency with allits stakeholders. Engaging and maintaining effective communication with all itsstakeholders is the key priority. Your Company holds earnings conference calls onquarterly basis with its Investors and Analysts. During these quarterly calls yourCompany ensures to keep the stakeholders informed on the Transmission and Distribution(T&D) market developments. The Company also uses this opportunity to share itsoperational and financial performance. Further during the conference call all theattendees are given an opportunity to ask questions directly from the top management teamthat is steering the call.

Your Company is also committed to keep its investors fully informed on majordevelopments by disseminating information through press releases and stock exchangecommunications. All presentations made and financial results shared with investors andanalysis are unfailingly uploaded on its website


A strong Internal Control framework has been an important part of operations andcorporate governance.

The Internal Control process of the Company has been robust and provides reasonableassurance on - reliability of financial information compliances with laws and regulationsin force and realization and optimization of operations. It ensures documentation andevaluation of unit and entity level controls through existing policies and proceduresprimarily to identify any significant gaps and define key actions for improvement. Also aformal system exists for periodic monitoring and reporting of the results of the internalcontrol self-assessments.

During the year the Company’s internal reviews identified some weaknesses incarrying out certain testing procedures in respect of certain products. The management hastaken corrective steps to strenghthen the procedures and is communicating with therelevant stakeholders.

During the year as per the provisions of Companies Act 2013 an in-depth exercise forevaluating the adequacy of Internal Controls over Financial reporting was undertaken andtheir design and operating effectiveness was assessed by the management. It was concludedthat as at March 31 2018 controls were operating effectively.

Further as part of the statutory audit the statutory auditors opinionated that theCompany has in all material respects an adequate internal financial controls system overfinancial reporting and such controls were operating effectively as at March 31 2018.


The long-term outlook for transmission and distribution sector remains positive as thebulk power generated in the country needs grid infrastructure for reliable efficient andstable power supply to the end consumer. The government’s bold moves in resolution ofNPAs recovering ailing DISCOMs and change in policy framework towards ease of doingbusiness is a positive move towards ramping up the investments in the infrastructurespace. Your Company is overall optimistic that various reforms initiated by Government ofIndia will lead to revival of the economy. Primarily due to increase in capitalexpenditure in utilities power generation industry and infrastructure that follow thesereforms. Your Company is fully prepared to address the resulting growth opportunities.

The strong thrust on renewable power generation evacuation and integration of cleanenergy has opened new market opportunities within the power sector. Strengthening ofsub-transmission network under the Integrated Power Development Scheme (IPDS) anddeployment of Power System Development Fund (PSDF) creates new markets for transmissionand distribution products.

The Company’s management team remains holistically focused on new opportunitiesand is committed to deliver increased value for its stakeholders.


This management discussion and analysis statement contains what could be regarded asforward-looking statements and information. These statements include forecasts andestimates as well as the assumptions on which they are based statements related toprojects objectives and expectations concerning future operations products and servicesor future performance. The readers are hereby cautioned and advised that theseforward-looking statements are subject to numerous risks and uncertainties that aredifficult to foresee and actual outcomes might differ significantly.

For and on behalf of the Board
Sunil Wadhwa
Managing Director
DIN: 00259638
Gaurav M. Negi
Whole-time Director &
Place : New Delhi Chief Financial Officer
Date : May 23 2018 DIN: 02835748