ALSTOM INDIA
Alstom India hit a new 52-week low on the back of its poor show for Q3. The company shocked everyone by swinging into losses. Alstom, which is engaged in the business relating to products, projects and systems of electricity transmission and related activities , posted a net loss of Rs.18 crore for Q3Fy16 compared to a net profit of Rs.26 crore in previous Q3. Total income declined from Rs.766 crore to Rs.755 crore while operating costs jumped up 2.5% to Rs.766 crore. Its order back log as at 31st Dec 2015 stands at Rs.7904 crore, down 6% (YoY).
The company has said that the market continues to be difficult due to lack of new investments from private sector and increasing bank NPAs which impact the cash flows from the customers. The announcement of “UDAY” scheme for discoms is positive news which, hopefully, would result in better cash flows and new investments in state T&D networks and eventually in the IPPs in the future. The company had a difficult quarter due to delayed sales impacted by Chennai flood and higher material costs/expenses in some contracts as well.
On 2nd November 2015, GE indirectly acquired Alstom T&D India as a part of its global acquisition of Energy business activities of ALSTOM. Until further update, Alstom T&D India will continue to operate under the name of Alstom T&D India.