Chairman's Speech

Chairman’s Speech at the 67^th Annual General Meeting of the Company on 21st August 2023 through Video Conferencing / Other Audio Visual Means

Esteemed Shareholders, my colleagues on the Board, distinguished ladies and gentlemen. We hope you and your families are in good health and spirits. On behalf of all the board members and the GE Vernova team, I would like to welcome you to the 67th Annual General Meeting of GE Vernova T&D India Limited. Thank you for joining us today.

Before we delve into the company's update, I would like to take this moment to welcome our new Managing Director and CEO Mr. Sandeep Zanzaria at his first Annual General Meeting for GE Vernova T&D Limited. Sandeep brings with him over three decades of experience in the power sector. I am confident that his exceptional leadership skills and expertise will steer the company towards continued growth and success.

Operations

Over the course of financial year 2022-23, we reached remarkable milestones in our mission to modernize India's grid infrastructure and support the country's renewable energy objectives. Our unwavering commitment to shaping India's energy landscape is evident through our successful project executions and operational improvements.

Throughout the year, we showcased our operational prowess by commissioning 32 air-insulated and gas-insulated substations across the nation. These installations, with varying capacities, have reinforced the nation's transmission network, thereby augmenting its capacity. Furthermore, we supplied large equipment such as 765 kV and 400 kV transformers and reactors to numerous customer projects, both in the private and public sectors. These initiatives play a pivotal role in strengthening India's transmission infrastructure and meeting its ever-growing energy demands.

Our manufacturing units embraced lean principles, leading to continuous improvements in manufacturing lead times, space utilization, and cycle times. These collective efforts ultimately translated into improved cost-competitiveness of your Company.

Orders

Your company's expertise in innovative technologies and services aligns perfectly with the evolving needs of India's grid electrification sector. This alignment is evident in our orders growth, which surged by 26% in the fiscal year 2022-23 compared to the previous year. During the same period, we secured orders worth Rs. 2736 Crore from both central and state utilities, as well as major private sector customers in India. Notably, the Green Energy Corridors segment, awarded through Tariff Based Competitive Bidding, remained a significant contributor. Our footprint in automation technology also expanded beyond India to neighboring countries and orders in digital automation and digital services further enriched our portfolio. As of March 31, 2023, your company’s order backlog stood at Rs. 3690 Crore.

Financials

During the financial year 2022-23, your company’s sales revenues amounted to Rs. 2773 Crores, 9.5% down from the previous year's Rs. 3066 Crores. We reported a net loss after tax of Rs 1.5 Crores against the net loss after tax of Rs 50 Crores reported in the fiscal year ended March 2022. However, I am pleased to report that your company made significant improvement in the operating profit. By operating more efficiently, we continue to drive cost optimization and enhance execution. This progress underscores our unwavering commitment to deliver value to our esteemed customers and shareholders.

Outlook

The growth of power sector has been a continuous focus area for the Government of India. In the National Investment Plan (NIP) of INR 102 lakh crore to help make India $5 Trillion economy by 2025, the power sector received 25% of the total budget . This budget will be primarily driven by multiple initiatives that are expected to be undertaken to achieve India’s vision of reaching 500 GW of non-fossil fuel energy by 2030, along with 50% reduction of country’s carbon footprint. As a result, the T&D market is also expected to grow at a steady pace in the next five to ten years. With innovative technologies and highly talented workforce your company is aptly placed to service these needs for the T&D sector.

Environment, Health and Safety (EHS)

Your company is committed to protecting its people and the communities in which it operates with its focus on  Environment, Health and Safety. The company aims to continuously improve its EHS culture and compliance as an integral part of its operational strategy. EHS excellence is at the core of what the company does and is fundamental to its identity. As a testament to our commitment to effectively implement EHS policies, during the year, your company received EHS appreciation certificates and letters from various prestigious customers such as Doosan, Adani Power Limited, Power Grid Corporation of India Limited, Tata Motors Limited and other such distinguished organizations.

Acknowledgements

Before I conclude, I extend heartfelt gratitude to our dedicated employees, leadership, and management for their unwavering support. I also thank Government authorities, customers, suppliers, investors, bankers, and shareholders for their steadfast cooperation and trust. Our distinguished Board Members, especially the Independent Directors, have played an instrumental role in guiding us. Your support is invaluable as we navigate challenges and commit to sustainable growth.

Conclude

I would like to conclude by emphasizing your company's significant presence across India, boasting 5 world-class manufacturing units. Our production in India extends beyond serving the nation alone; it caters to the global market as well. With such a robust foundation, we are deeply committed to meeting the surging electricity demand in India while actively capitalizing on the global power market by exporting top-notch made-in-India grid equipment.

Looking ahead, we will maintain our focus on innovation, investing in research and development to create novel solutions that optimize grid operations and seamlessly integrate renewable energy resources. Additionally, we will continue to nurture a culture of collaboration, inclusivity, and employee growth, recognizing the crucial role our passionate team plays in our ongoing success.

Thank you for keeping faith in your company.  I wish all of you the best of health!

Thank you!

[This does not purport to be a record of the proceedings of the 67th Annual General Meeting]