Equip­ment cos’ profit shrink as or­ders dip

Hindustan Times (Patna) - Live - - Business - Aman Ma­lik aman.ma­lik@hin­dus­tan­times.com

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

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