Chairman's Speech

Chairman’s Speech at 68^th Annual General Meeting of GE T&D India Limited on 4^th September 2024 through Video Conferencing / Other Audio Visual Means

Dear Shareholders, my colleagues on the Board, distinguished ladies, and gentlemen,

Good afternoon, and a very warm welcome to the 68th Annual General Meeting of GE T&D India Limited. It is a matter of privilege for me to address you today at the conclusion of a remarkable year for our company—a year of significant turnaround. I am immensely proud of the achievements we have made, and I want to begin by expressing my heartfelt gratitude to all our stakeholders who have made this possible.

A Year of Turnaround

This past year has been transformational for our company. We have witnessed substantial growth, which is a testament to the faith and trust our customers have placed in us. I would like to take this opportunity to extend my sincere thanks to our leadership team, including our MD & CEO, Sandeep Zanzaria, our CFO, Sushil Kumar and the entire management team, whose dedication and strategic vision have been instrumental in driving this turnaround. I also extend my gratitude to our Board members, including the Independent Directors and the GE Vernova nominated Directors, for their unwavering support and guidance. Together, we have ensured that the interests of all stakeholders, especially our shareholders, are respected and prioritized.

Market Outlook and Opportunities

The financial year 2023-24 saw a stable market environment, with India’s electricity demand growing at around 7% [IEA]. The overall installed energy capacity in India reached 442 GW, supported by significant investments in Transmission and Distribution systems. As India continues its journey towards becoming a Viksit Bharat by 2047, the demand for reliable and efficient electricity supply is set to surge. This ambitious vision will require the domestic power sector to support rapid economic growth, targeting a GDP of $30 trillion by 2047, up from the current $3.9 trillion.

Your company is well-prepared to address these emerging demands. We have strategically invested in the Extra High Voltage (EHV) domain, both in AC and DC technologies, and we are ready to leverage additional technologies from our prime shareholder, GE Vernova, to meet the future needs of the market. We believe that the economic and infrastructure growth momentum witnessed in recent years will continue under the newly formed government, presenting significant opportunities for our company to contribute to India’s energy transition.

Operations

Operational efficiency has been a cornerstone of our strategy. We have made significant strides to improve on-time delivery, optimise cost structures and facilitate lean operational processes. Our focus on selective market participation has further enabled us to engage with clients offering favourable payment terms and higher margins, thereby reducing exposure to high-risk markets. We will continue our way forward with laser sharp focus on efficiency.

We are proud to have partnered to improve India’s transmission network by commissioning the first interstate transmission project for Renew Power, a 1500 MW power evacuation system. This project is anticipated to significantly improve reliable power supply in the state of Karnataka. For Adani group, we commissioned the largest interstate transmission project Warora Kurnool using 765 kV AIS technology for three stations, which included the commissioning of transformers and reactors, highlighting our expertise in managing large-scale, high-voltage transmission projects. These accomplishments are a reflection of our zeal to offer reliable and advanced power solutions, enhance the grid infrastructure and fulfil the energy requirements of our customers and communities. Operational efficiency has been a cornerstone of our strategy. We have made significant strides to improve on time delivery, optimise cost structures and facilitate lean operational processes. Our focus on selective market participation has further enabled us to engage with clients offering favourable payment terms and higher margins, thereby reducing exposure to high-risk markets.

Orders

Your company's expertise in innovative technologies and services aligns perfectly with these evolving needs of India's grid electrification sector. As a result, we have been receiving orders from prominent transmission players in both the public and private sectors. This is evident in our order bookings, which increased by 112% in the financial year 2023-24 compared to the previous fiscal year.

During the financial year 2023-24 your Company received orders worth INR 57.9 Billion from central and state utilities as well as from other major private players in India and various EPCs and developers, resulting in an order backlog of INR 62.7 B vs 37.0 B, as at March’ 23.

Our automation and digital grid solutions have been widely adopted by utilities for their substations and control centers across the region. Notably, we received an order from PGCIL to build a State Transmission Asset Management Centre in Odisha, India for OPTCL and for supply of GIS for Data Centers in Maharashtra and Andhra Pradesh. Orders in digital automation and digital services also continue to add significantly to the overall number.

Financials

During the full financial year 2023-24, our sales revenue was Rs INR 31.7 billion, against INR 27.7 billion in FY 22-23, up 14% YoY. The Company reported Profit After Tax was at INR 1,811 million, against a loss of  INR 15 million in FY 22-23. In the financial year of 2023-24, GE T&D India Ltd. achieved a strong turnaround, delivering excellent results on all fronts. We had a strong growth in order booking and our backlog improved along with steady growth in revenues and substantial growth in profits & cash. In addition, a clear focus on cash generation also paved the way for being a debt-free Company - a significant milestone in our financial journey.

The company consolidated its position on free cashflow, and the Board has recommended a dividend of INR 2/- to our shareholders after a gap of 5 years.

Business Overview

Your company has been at the forefront of building India’s transmission and distribution infrastructure since 1911. We pioneered the localization of EHV 765 kV AC technology in 2007-09, and today, more than 50% of India’s EHV 765 kV AC grid is equipped with our technology and solutions. We have also led the way in localizing Gas Insulated Switchgear (GIS) technology up to 400 kV and introduced 800 kV HVDC technology, further cementing our leadership position in the domestic power sector.

In 2013, your company played a crucial role in transforming the Indian electric grid into a single frequency synchronous AC grid by interconnecting all five electrical regions of the country. Today, we stand ready with a comprehensive portfolio of technologies, products, services, and solutions to capitalize on the opportunities in the sector. By focusing on building both organizational and operational capabilities, we are committed to delivering on our promises to customers, ensuring top-notch product quality, on-time delivery, and enhanced client satisfaction.

Leveraging Digitalization

India’s transmission grid has undergone significant digitalization since the early 2000s, driven by PowerGrid Corporation of India’s initiatives in building Unified Load Dispatch systems. Your company has been a key player in delivering these advanced digital systems and software solutions, establishing a strong local delivery center. The next wave of digitalization presents new opportunities as State Utilities prepare to invest in their State Asset Management Centres, and the Distribution sector embarks on improving the performance of State-level distribution grids. Your company is well-equipped to support these emerging markets with our product and software solutions.

Expanding Capacity and Resources

As we look to the future, your company is set on a path of growth. We recognize the internal and external challenges that lie ahead, and we are committed to addressing them head-on. Internally, we are focused on improving our manufacturing capacity through simplification and lean initiatives. We are streamlining production processes and expanding production volumes to ensure timely delivery of products and solutions. Our leadership team is also dedicated to skill development and enhancing human resources to meet customer commitments effectively.

Commitment to Sustainability

While driving business growth, we remain committed to the safety and well-being of our employees and the communities in which we operate. Our Environment, Health, and Safety (EHS) excellence is integral to our operational strategy. We are dedicated to creating a secure and healthy work environment, utilizing natural resources and energy sustainably, and ensuring compliance with all applicable regulations. This commitment to responsible growth will continue to guide our efforts as we strive to make a positive impact on society and the environment.

Conclusion

In closing, I want to express my deepest gratitude to the GE T&D India team, the Board of Directors, our partners, investors, and all other stakeholders for being an integral part of our journey. Looking ahead, we remain committed to deliver value to our shareholders through prudent financial management, development of innovative solutions and improving our foray in the power transmission and distribution industry.

Thank you for your continued trust and support.

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