Equipment cos’ profit shrink as orders dip
Even as the government has moved ahead with power sector reforms to turn the fortunes of debt-laden discoms, equipment manufacturers still continue to feel the heat.
While companies such as Bharat Heavy Electricals Ltd (BHEL) have seen their profits turn to losses during the JulySeptember quarter due to reduced income from operations, smaller ones such as Schneider Electric say their order books has dried up.
“Conventional generation (orders), which is 25% of our order book, have disappeared,” Prakash Chandraker, managing director and vice-president of Schneider Electric Infrastructure told HT. Companies are trying to make up for the fall in orders by foraying into the upcoming solar market, he added.
Consolidated annual industry data compiled by the Indian Electrical & Electronics
IMPACTED FIRMS INCLUDE BHEL, SCHNEIDER ELECTRIC, L&T, BHARAT FORGE, GAMMON INDIA AND TOSHIBA
Manufacturers’ Association (IEEMA), throws up an alarming schism — while transmission and distribution (T&D) segment has remained steady over the last three years, the generation segment has been consistently falling.
While in 2012-13, the total production in the boiler-turbine-generator (BTG) segment, the crux of the generation segment, stood at `20,223 crore for 2014-15, down from `24,268 crore in 2014-15 and `36,435 crore in 2013-14.
Interestingly imports have also declined. “This shows that domestic demand has fallen,” Ninad Ranade, an analyst with IEEMA told