Any current/future new fundraising through debt or equity?

No specific updates were provided regarding new fundraising through debt or equity. The company is focused on collecting existing receivables (~Rs. 1300 crores) to repay debt and manage payables. Prashant Jain and Yogesh Gupta mentioned using collected funds primarily for debt repayment and operational expenses. New orders are targeted to be cash accretive with lower retention demands to improve cash flow. No mention of fresh debt raising or equity issuance plans in the disclosed Q1 FY23-24 discussions. The company is focusing on stabilizing operations, optimizing structure, and growing servic

Any current/future capex/capital investment/strategic investment?

GE Power India is focusing on exploratory initiatives that may take about 2 years to generate some revenues, including pilot tests to assess impact. The company is exploring options at the Durgapur factory to produce for non-power related sectors, indicating a strategic investment in diversifying operations. They are optimizing their organization progressively to stabilize and prepare for growth, especially in services and industrial segments. No explicit mentions of large current or immediate future capex, but the focus is on gearing up capabilities, maintaining plant readiness at Durgapur, a

Future growth expectations in sales/revenue/volumes?

Revenue growth is expected to be modest and gradual due to delayed orders and project execution timelines, particularly in FGD and upgrade segments. The turnaround is taking longer than anticipated, with meaningful revenue from new orders like FGD expected only after 12-15 months post booking. Order intake is improving, but conversion to revenue is slower due to government delays in FGD implementation and market challenges. Core services are showing consistent growth, with around 20% growth in core services segment. New opportunities in biomass integration, methanol, ethanol in coal plants, an

Future growth expectations in earnings/operating earnings/profits/EPS?

Services segment is growing at around 20%, seen as a key lever for turnaround and growth. Focus on three main areas: services, industrial segment (including Durgapur factory), and private customers with industrial opportunities. Turnaround expected to take a couple of years due to delayed FGD orders and complex backlog execution. FGD market growth is gradual; orders delayed by 2 years, with revenue from new FGD orders expected 12-15 months post-booking. Market share targeted around 10% of the 114 GW FGD opportunity over 5-7 years. EBITDA profitability expected with gradual pickup in

Current/ Expected Orderbook/ Pending Orders?

As of June 30, 2023, order backlog stands at ₹3,382 crores representing active revenue opportunities in Hydro, FGD, Boilers, and Services segments. Q1 FY23-24 order intake was ₹191 crores, significantly lower than ₹1,008 crores in Q1 of FY22-23, mainly due to lack of large pump storage orders booked previously. Orders are slower than anticipated, especially in FGD and new build segments; some uptick in service upgrades but insufficient to cover gaps. FGD orders remain subdued with conversion slower than expected; however, slight improvement in the market is noted. The company expects F

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GE Power India LtdQ2 FY23Electrical Equipment

GE Power India Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,035P/E: 13.4Market Cap: ₹4.7K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

Capex

N/A

0 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Revenue growth is expected to be modest and gradual due to delayed orders and project execution timelines, particularly in FGD and upgrade segments.
→The turnaround is taking longer than anticipated, with meaningful revenue from new orders like FGD expected only after 12-15 months post booking.
→Order intake is improving, but conversion to revenue is slower due to government delays in FGD implementation and market challenges.
→Core services are showing consistent growth, with around 20% growth in core services segment.
→New opportunities in biomass integration, methanol, ethanol in coal plants, and industrial segment (factory in Durgapur) are being explored but will take about 2 years to impact revenues.
→Hydro and pumped storage market opportunities are being pursued selectively, focusing on margin and cash accretive projects.
→Overall focus remains on volume increase via fresh orders, claims settlement, and cash collections to improve cash flow and support growth.

Margin guidance

Category 3

→Services segment is growing at around 20%, seen as a key lever for turnaround and growth.
→Focus on three main areas: services, industrial segment (including Durgapur factory), and private customers with industrial opportunities.
→Turnaround expected to take a couple of years due to delayed FGD orders and complex backlog execution.
→FGD market growth is gradual; orders delayed by 2 years, with revenue from new FGD orders expected 12-15 months post-booking.
→Market share targeted around 10% of the 114 GW FGD opportunity over 5-7 years.
→EBITDA profitability expected with gradual pickup in orders and execution; exact timeline not specified but implied within 2-3 years.
→Cost optimization largely done; future profit improvements largely dependent on revenue growth and order flow.
→EPS expected to improve as net losses reduce with operational stabilization and revenue recovery.

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Fundraise plans

→No specific updates were provided regarding new fundraising through debt or equity.
→The company is focused on collecting existing receivables (~Rs. 1300 crores) to repay debt and manage payables.
→Prashant Jain and Yogesh Gupta mentioned using collected funds primarily for debt repayment and operational expenses.
→New orders are targeted to be cash accretive with lower retention demands to improve cash flow.
→No mention of fresh debt raising or equity issuance plans in the disclosed Q1 FY23-24 discussions.
→The company is focusing on stabilizing operations, optimizing structure, and growing services and industrial segments before considering further financial moves.

Order book

→As of June 30, 2023, order backlog stands at ₹3,382 crores representing active revenue opportunities in Hydro, FGD, Boilers, and Services segments.
→Q1 FY23-24 order intake was ₹191 crores, significantly lower than ₹1,008 crores in Q1 of FY22-23, mainly due to lack of large pump storage orders booked previously.
→Orders are slower than anticipated, especially in FGD and new build segments; some uptick in service upgrades but insufficient to cover gaps.
→FGD orders remain subdued with conversion slower than expected; however, slight improvement in the market is noted.
→The company expects FGD and flexibility-related studies to translate into meaningful opportunities approximately a year from now, as customers test system stability and changes required.
→Hydro orders, particularly in pumped storage, are in early stages with some orders suspended due to land issues.
→Focus remains on core services, backlog execution, and selective bidding for margin and cash accretive projects.

Capex plans

→GE Power India is focusing on exploratory initiatives that may take about 2 years to generate some revenues, including pilot tests to assess impact.
→The company is exploring options at the Durgapur factory to produce for non-power related sectors, indicating a strategic investment in diversifying operations.
→They are optimizing their organization progressively to stabilize and prepare for growth, especially in services and industrial segments.
→No explicit mentions of large current or immediate future capex, but the focus is on gearing up capabilities, maintaining plant readiness at Durgapur, and selective investments in margin- and cash-accretive opportunities.
→Prashant Jain highlighted retaining competence and capacity even amid underutilization to be ready for future growth and opportunities, implying capital to sustain operational capacity.

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