Ladies and gentlemen, good evening, and welcome to GE T&D India Limited earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Tanvi Gupta from GE T&D India Limited. Thank you, and over to you, ma'am.
Thank you, sir. Good evening, everyone. We welcome you all to the GE T&D India Limited earnings call for the second quarter and half year of financial year ending 2024. I'm Tanvi Gupta from GE T&D India Finance and Investor Relationship Team. We're delighted to have you all here on this call. During the call, we'll discuss the company's financial performance, including operational highlights. We'll share the key updates and we'll address the questions if you have any. Before we begin, I would like to highlight few important notes for today's call. Firstly, as we just declared the results for the second quarter and half year of the financial year ending 2024, the said results are now available on our company website. Further, we have also prepared an analyst presentation for the quarter, which will be under discussion during the call.
The said presentation, we have already emailed to you and is also available on our company website. Also, I would like to take a moment to remind everyone that today's discussion may contain forward-looking statements that are subject to risk and uncertainty. These statements are based on our current expectations, and actual results may differ materially from those expressed or implied. We encourage you to refer to our public filings and disclosures for a comprehensive understanding of the factors that could impact our future performance. With this, I would like to introduce the GE T&D India management team available on this call. During the call, we'll be joined by Mr. Sandeep Zanzaria, CEO and MD of the company. Along with him, we are also joined by Mr. Sushil Kumar, Whole-time Director and CFO of the company, Mr. Abhishek Srivastava, Head, Business Operations, Mr. Anshul Madan, Communications Leader, and Ms.
Anupriya Garg, Company Secretary of GE T&D India Limited. We'll be having a detailed question and answer session towards the end of the presentation, where you can ask your questions and seek clarifications any topic of your interest. Thank you once again for joining us today. We appreciate your continuous support in GE T&D India Limited. I will hand over the call to Sandeep for his opening remarks. Over to you, Sandeep.
Thanks, Tanvi, and good evening, ladies and gentlemen. Thank you for joining us today. I hope you and your loved ones are doing well. Wishing you a happy Diwali in advance. Welcome to our quarterly call for discussion on the results of Q2 of financial year 2023-2024. I'll be sharing the top highlights, and subsequent to that, my other team members will take you through the numbers and other operational details. Starting the call, we are excited to share the continuous surge in our order book for Q2, driven by India's energy transition need and the government's focus on the renewable energy scheme. We secured orders worth INR 11 billion, compared to an approximately INR 5 billion in the corresponding quarter of the previous financial year, registering a growth of more than 100% year-on-year.
With this, our backlog at the end of the quarter is quite healthy and has improved from INR 37 billion to INR 43 billion. This growth is a testament to our capacity to meet the evolving needs of power, India's power market. Note what we highlight here is that we have received orders, received this growth in orders in all our segments, which is like projects, high voltage products, that is GIS, AIS products, power transformers, and also grid automation. This increase in our order reinforces our position as one of the market leaders in the segment. Apart from our regular inflows orders from export market, we have received a 225 kV GIS switchgear supply order from Senegal
These orders not only demonstrate the trust our customers place in us, it also highlights our ability to deliver high quality, reliable grid equipment that are critical to the strengthening of India's transmission infrastructure. Our sales almost remained flat as the same as in the corresponding quarter of the previous financial year, at INR 7 billion. We will note a significant increase in our profit before tax of approximately INR 503 million, compared to INR 101 million for the corresponding Q2 of 2023, and INR 859 million for H1 2023-2024, against INR 203 million for H1 2022-2023. This achievement can be attributed to the several strategic initiatives aligned with best practices. First, our continuous focus on adapting a Lean mindset and implementing operational efficiencies has allowed us to streamline our processes and optimize resource allocation.
Additionally, our unwavering commitment to enhance our execution capability has translated into improved cost management, ultimately strengthening our bottom line. Another highlight was that our net debt as of the quarter ending September 2023 stands as INR 150 million, making a reduction of more than INR 1 billion compared to June 2023, and a reduction of INR 1.6 billion compared to March 2023. I would like to stress that cash remains our key focus in all our business processes.… The accomplishment of this quarter not only highlights our expertise, but also showcase our ability to provide innovative solutions that meet the evolving demands of India's energy landscape.
At GE T&D, we take pride in being at the forefront of this transformative journey, and we look forward to a future where we recognize that the energy sector is evolving at an unprecedented pace, and our strategy is closely aligned with India's national goals and global trends. As we move forward, our strategic focus remains firmly and centered on driving innovation, efficiency, and reliability in India's rapidly evolving energy landscape. We are dedicated to co-creating a sustainable and resilient energy future for India, and eagerly anticipate the exciting opportunities that lie ahead. Thank you, and now I invite Abhishek, our Project Business Head, to share further details and operational highlights. Abhishek?
So thanks, thanks, Sandeep. Good evening to all. So I will take you all through the key operational success that we have achieved in the second quarter of the financial year. So we added the four key substation to the Indian transmission network. The first one was UPCL Sahupuri , which is a 200 kV GIS, built in the city of Varanasi and serving the close by area and vicinity. The second was Warora Kurnool Transmission Limited, substation project, in which we commissioned two key substations. One was at Warangal and other one at Chilakaluripeta. This was a very critical scheme, additional interconnecting link, which was formed to import power from into the southern region from western region.
These are 765 kV by 400 kV AIS substations, and set up of these substation scheme has added 3,500 MVA of transformation capacity. So the scope that we executed was building up the substation along with supplier, transformer and reactor. So this is a very key project, and if I talk about the criticality of this, this is the largest 765 kV double circuit HVDC project done in India, and it was great to GE to be part to partner with Adani in building up this substation. And this has been a lot of challenging times. So finally, we commissioned two key substations in this. And the fourth one was [KTP Kurnool], in which we set up a 110 kV GIS substation for supplying power to the district of Nalgonda.
These are a few of the key highlights, operational success, wherein we commission the substation and hand it over to these substations, to the utility. With this, I hand over to Sushil to take us through further details.
Thanks, Abhishek. Good evening, everyone. Wish you a very happy Diwali. Sandeep talked about our strong financial performance during his speech. I'll be taking few pages on our financial performance to make a deep dive on some of the key numbers that we delivered in this quarter. First, on page five of the investor presentation, talking about orders, which have here we have delivered more than 100% growth compared to the last second quarter of the last financial year. In the last year, we had delivered about INR 5 billion of orders. But this year, in the second quarter, we have about INR 10.8 billion of orders.
This growth is across the board, across all our business segments, and has been quite diverse in nature, meaning we have received orders from private customers, government customers, we have received orders from the export market, we have received orders from the EPC customers, and for various business lines. The details of the projects are given in the presentation. I'll not repeat them, but just wanted to highlight that it's a very strong order growth versus last year across the board. Just one more clarification that we recently made a stock exchange declaration of receiving INR 5 billion orders. That order achievement is for the month of October, so it's not a part of the numbers that we are presenting today. That will be counted as order booking in quarter three of the financial year. Now, talking about the P&L performance in the next page.
While the revenues remained flat at around INR 7 billion for the quarter, we saw a significant improvement in our operations, with initiatives taken in the last few years, as Sandeep highlighted, which included, areas like lean, productivity improvement, changing the mix of our orders, taking the pure orders with better terms, and so on. All those initiatives has helped us to achieve a EBITDA of about 10%, to the extent of INR 698 million in the quarter, representing, more than 100% increase versus last year. So the EBITDA has gone up by, 2x versus the last year. Same improvement has flown to the profit before tax. We achieved about INR 503 million of profit before tax, which is 5x, almost 5x of the product performance in the last financial year.
At the same time, Sandeep highlighted about our net debt coming significantly down. Last year, quarter two, we had about INR 3.6 billion of outstanding debt, and we have made a significant progress in last one year. We have retained most of the debt, and we are at around breakeven, close to a breakeven debt situation or no debt situation, and -INR 114 million of debt at the end of the December. It's a very improved position versus last one year. We have made a significant progress. Similar improvement across the board on H1 performance. H1, the revenues were INR 14 billion, higher by 9% versus the last year H1. EBITDA at INR 1.3 billion, again, 2x of the last year performance.
Profit before tax is around INR 889 million, 4x of the profit before tax in the last year, half by half. So made a significant progress. Moving to the next page, where we have given the split of our order booking and revenue between, domestic and export segment. For the INR 10.8 billion orders that we booked in the current, financial year, T2, we have 24% of the orders coming from the export market, and about 76% orders coming from the domestic market. On the revenue side, 29% of the revenue is from the export segment and, 71% revenue from the domestic market.
43 billion orders in hand, have about 75% of the orders from the private segment customers, 15% of the orders from the central utility and PSU, and 10% of the orders in hand from the state utility. So this is overall quarter two numbers, and now we'll be happy to answer your questions.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you press star then one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star then two. All participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Renu Baid Pugalia from IIFL Securities. Please proceed.
Yeah, good evening, sir, and congratulations for profitable growth. My first question is, if you look on the execution side, are there any headwinds on the domestic market in terms of setting up the execution run rate, or it's more to do in terms of the entire supply chain and the project timelines?
Renu, no, we are not seeing any headwinds, primarily on the supply chain. Definitely, the supply chain is slightly extended, but the orders what we have received are taking into consideration the, the time frame, which today our sub-suppliers are committing to us.
Got it. Can you share some color in terms of the broad revenue mix for the current quarter in terms of products, projects, population solutions? Because that is clearly reflected in the gross margin profile that you reported quarter.
We have about 12% of the revenue coming from the services and software business put together.
Uh-huh.
Maybe I'll answer before the next question about the split of rest 88% between the product and project business.
Sure. Secondly, we see a pretty interesting improvement in the working capital and reduction of debt on books. To what extent we think this improvement is sustainable, and is it also a function of the setup in order that we see the cycle of advances and the entire working capital cycle, cash flowing cycle has seen a pickup in terms of improvement on books?
Yes. So it is factor of all the improvement actions that we have taken, meaning advances, yes. If we look at the financial statement around in the INR 1.6 billion cash that we have generated in the first half, around INR 0.5 billion or about INR 50 crore is coming from the down payments that we have received on the new order.
Mm-hmm.
Rest of the improvement is mostly from the actions across the board, be it on account of realization of past dues or credit receivable, reduction in the inventory through the Lean initiative, and also making sure, as you have been talking about con call for last many quarters, we talked about selectivity of the order, which means secure payment terms, the payment terms with lesser credit period, and so on. That means the profit which we realize is also getting converted into cash. So cash generation is a combination of profit converted to cash, plus working capital improvement across the board.
Yeah, yes. Lastly, Sandeep, could you also share some inputs, as you have been talking pretty positive in terms of the domestic order pipeline improving on a strong note, the GEC projects coming through on exposure that you have. So any comments in terms of how the order pipeline is looking for the next six to 12 months? And do we foresee any slowdown in the order over the next six years because of the elections? Thank you.
So we are looking at, I think, whatever run- rate we are maintaining, so we are looking at a quite healthy growth, or sustainable order intake pipeline, at least for next six to 12 months revenue. That is because, you know, GEC projects and all, of course, now they have started coming up at a regular interval and the finalization is also happening. But with the visibility, at least we're pretty confident of next 12 months, yeah, we will be able to maintain the run rate.
Coming back to your first question on the split of revenue between project and product. So around 60%-65% of the revenue are from the product business, 20%-25% of the revenue from the project business, and the rest revenue is from the services and software business.
Okay. Thanks for this clarity and that information. Thank you.
Thank you, Renu.
Thank you. Ladies and gentlemen, before we move to the next question, a reminder to the participant, anyone who wishes to ask a question, may press star then one. Next question is from the line of Janak Lotwala, an individual investor. Please proceed.
Hi, sir. Am I audible?
Yeah.
Yeah, yeah.
First of all, many congratulations, team, for a great set of results. My first question is around the operating margins per se. Also, while there is a significant operating leverage that seems to be kicking in and helping our net profitability, quarter-on-quarter, what is the sustainable margin in terms of EBITDA margin we are looking at? Or we look to, what is our healthy EBITDA margin per se?
So the current margin of, let's say, gross profit of around 36%-37% and 10% EBITDA, is already healthy if you compare the past, many year of performance. However, having said that, management always endeavor to perform better, and this can have multiple, ways of improvement. First, targeting better profitability in the order, then many execution initiatives that Sandeep talked about, including lean productivity, efficiency, and so on. And the last one being, the last couple of, actions being, first of all, the control over fixed expenses as a structure cost and the working capital improvement, which then helps to save the financial cost. So we'll continue to work on the improvement as a management on these numbers.
So we see going this into double digits, we expect more improvement on this front in quarters to come, you are saying?
I'm not giving a forward-looking guidance. What I'm saying is that our endeavor is to always improve, but the quarter and quarter number always depend on the mix of project products and other things. We will continue to work on this direction.
Okay, sir. Fair enough. My second question is around the order book. While our order book seems to be very healthy, around INR 4,450 crores of orders pending, any particular number there that we are looking at in executing over next period of 10 months?
So basically, so, as an expert, Sandeep here. So basically, what we do is that we keep on assessing the customer requirement in terms of what are the delivery leads, and also that, what kind of capacities we have, do we have the slots for that? And accordingly, we take the order. If you really look at our run rate, I think, we are looking at an order intake of about close to INR 1,000 crores. So eventually, the run rate, which needs to go, in few quarters when it gets levelized, again, depending on the product and project mix and all, it'll be somewhere near that number. That is the expectation.
Okay. Okay. Thank you, and I wish you all the best for quarter three.
Thank you, Janak.
Thank you.
Thank you. Ladies and gentlemen, to ask a question, you may press star then one. We have our next follow-up question from the line of Ms. Renu Baid Pugalia from IIFL Securities. Please proceed. Ms. Renu, your line is unmuted. Please go ahead.
Sorry. Thanks, sir, for the opportunity again. Sir, to look at the INR 50,000 crore order book being sustainable and afterwards, then we have a large order that was announced in addition to the big orders that will continue. Do you think sometime coming in the going forward in the next fiscal year, delays start feeling a pinch on the capacity side? And are there any capacity expansion plans? So we know what the current utilization levels, do you think in the next 12, 18 months, if the new order flow momentum sustains, will that trigger some capacity bottlenecking in certain product lines? Sir.
So Renu, we keep on like, like I said, we keep on analyzing that yes, in which segment the orders are coming, and then how these capacities can be bottlenecked. Of course, one of the main principle of Lean is also that how to bottleneck and how to increase the productivity. So it's basically a kind of a mindset change also, and on our global, under the global directive, we keep on working on that. Depending upon the situation, yes, we will be looking into the time frame. Also we are also trying to see that which capacities are like which area in the market is something where we need to target more in terms of improving the margins and improving the order profile.
Right. So for instance, suppose transformer segment of the market, the domestic market is already tight in terms of capacities, and we were also expecting large export orders on this side. Do you think at least within the product business line, transformer segment could see some capacity enhancements?
It will be very difficult to tell now, but yes, in case if we, if we face such a constraint, definitely that is something we look forward to.
Okay. Can you also share us an update in terms of progress on the HVDC project, as well as all the three [NARC]—even pricing, kind of submission, happening there. Where are we in terms of the timelines? Do we expect any delays? Also on the export opportunities and products, how are those developments shaping up?
So, for Bhadla, as you know, the building has already started, so we started with the developers. Of course, Bhadla being such a large project, require a huge amount of, system studies and, also creating a complete bid of an HVDC takes time. So, we are working with few developers, who are there. And, also regarding the export market, this definitely we keep on analyzing, with our global teams. Because, you know, for HVDC and all those applications, it is ultimately the acceptance of the international customers of our local factories is also a critical point. So that we keep on analyzing, and wherever it is, beneficial for the company, those orders will be targeted and will be kept in.
Got it. All right, sir, thank you so much, and best wishes for Diwali to your team. Thank you.
Thank you, Renu. Thanks to you as well.
Yes, thank you.
Thank you. Next question is from the line of Janak Lotwala, an individual investor. Please proceed.
Hi. Thank you, sir. I have a follow-up question around the orders and the business environment that we're operating in. While we have a very strong and healthy order book, and there are a lot of tailwinds in the business, if you were to describe what is it certain three, four top factors that can be key sources of risk to the execution over the next 12, 24 months, what will be the three, four areas of uncertainties or risks that we have to keep in mind as investors?
So I think one of the biggest risks that we see in today's environment, based on our experience of last one to two years, is geopolitical factors, you know. For example, the Russia-Ukraine war, which kind of disrupted the whole supply chain in a very big way. So that is one area where we keep on constantly monitoring, because that is something which can impact to a great extent, the supply chain situation. So that is one. And second, also for many of our product on chip component side, we are also dependent on single source suppliers. So that also the company is working to develop alternate sources and try to see that we de-risk ourselves from any such situation where the supplier is not able to perform.
Apart from that, also, the way the renewable market is now growing, and along with that, the private transmission is growing. So like in the power generation segment, there was a time when a lot of people entered, and then there was a challenge on the financial side. So we try, and as Sushil said, that we try and we make a proper assessment and ensure that with the companies which we are entering into and doing business are very robust and under a set of conditions which it clearly minimizes the risk for us.
Got it. Got it. So similar to what you mentioned about sourcing from single suppliers, do we have any customer concentration risk as well? What are the revenues that our top five, 10 customers are contributing to? And are there any measures on that front? What does our customer profile look like in terms of revenue concentration?
So if I tell you that we don't have this type of a situation for us, because as I think you would have seen the presentation also, we have kind of a very diversified portfolio of customers. So like we are doing with generating companies, we are doing with EPC companies, we are doing with private transmission companies, we are doing part with state utilities, so-
Industry also.
Industry also, for example, Hindalco and Reliance of the world. So it is that we have a very diversified portfolio in terms of customers. So, today we don't have any customer where we are dependent, like on one customer, we are dependent for 25%-30% of our revenue. We don't have any such customer in our portfolio.
Got it, sir. Got it. That's it from my side, and thank you and greetings for the festival season.
Thank you, Janak. Thank you, Janak.
Thank you. Next question is from the line of Abhijit from Yes Securities. Please proceed.
Yeah. Good evening, sir. My question is on the supply-demand balance from a slightly longer term perspective. We've seen demand for the last two, three quarters, we've seen increased tendering activity, increased tendering pipeline pertaining to GEC. So the demand is picking up, and in line with that, a lot of players have put up capacities key customers, players, et cetera. So going forward, let's say from a perspective of two to three years, so when do you see the capacity catching up with the demand and it's having an impact on pricing and margins? So right now, we are in the cycle of expanding margins. I'm sure the margins are also pretty attractive in this cycle.
Sir, since a lot of players are expanding their capacities, how can we look at the scenario going forward in the next two to three years?
I think going forward in the next two to three years, of course, we cannot, we cannot create, like, for example, suddenly we cannot decide. Like, for example, when we look at GEC corridors, etc., at one point of time, GEC corridors were taking more than one year for decision making, or sometimes it was more than one year also for decision making. So first, we have to also see the sustainability of GEC corridor at a regular interval of ordering. That, that is one thing that we have to, we have to have that confidence. That is first aspect. Second, also, when we today try to build up a capacity, it is not something which can be built in, like, six to eight months time. So we also have to see the kind of new capacities building up, how much time it takes.
Also, it is not only the capacities which have to be built up. It is also you have to see that we have the back end, the supply chain, how you are comfortable with that supply chain in that specific product to support you in terms of those deliveries. This is the second factor. Third, and the most important thing, Abhijit , is that we keep on analyzing this thing, and then there are a lot of factors how you debottleneck your capacities and try to increase on an incremental basis. So that's a constant endeavor we keep on doing, and in this scenario also, at least that is what will be the focus of the company as well.
Right. Sir, what... I mean, if you can point out what is the current capacity utilization for us in the higher kV category, like 765 kV? Is it possible to quantify that?
It is very difficult to quantify, Abhijit , but I would only say, I would like, pretty high.
You're saying pretty high?
Yeah.
Okay. Secondly, sir, on the state order book from the state side, so last four to five quarters sequentially, I've seen the state sector decline quarter-over-quarter. Now it is around somewhere around INR 200 crores. Is this something a conscious decision that it's going slow on state orders because of certain issues that you are facing?
Yeah. I believe we had taken a conscious decision to move from state and to concentrate more on private sector because of the flexibility it offers. State is more like L1 bidding, reverse auctions and other things. That's what a conscious decision was made, to shift more from state towards more from private. I think the improvement in results what we are seeing is one of the actions that was taken as a result into these results.
Right. Right. Thank you for my answers. Thank you so much.
Thank you, Abhijit .
Thank you. Next question is from the line of Harshit Kapadia from Elara Capital. Please proceed.
Yeah. Thank you for the opportunity and congrats for good set of numbers. So just a clarification on HVDC. What CEA has approved is of INR 13,200 crore as a total project size for the Bhadla part. Now, how much would be the HVDC portion within that, and what would be the EPC portion? And will it be given to a single company or there be multiple companies who would be winning it? And if you can highlight, how quickly L1 or L2 ratio would be.
So, Harshit, first, first of all, we are not aware how CEA has reached that budget, so probably that is for them to answer. But CEA has taken out this tender on TBCB route. So on TBCB route, when it will be awarded, it will be awarded to a developer, and the scope of developer will be from acquiring land to building and commissioning the project and running the project that is going on for 35 years, including building the transmission lines. So this depends upon which developer wins, because that developer, from example, developer X to developer Y, may have a different model of procurement. Like somebody can say that it is civil work, they will do, or somebody might split line into four parts, somebody might split line into two parts.
Somebody can give the HVDC terminal without construction. Somebody can give HVDC terminal with construction. Sorry. So this is the kind of an individual strategy of each and every developer, so it will be very difficult for us to comment on that.
Any understanding on what is the cost of, let's say, an HVDC line, a HVDC terminal, or HVDC substation, if it is coming up? Any rough understanding would be very helpful, sir.
No, sir, it will be too premature because, you know, we have just started engaging and some at a very preliminary stage. So for such a large project, it is very difficult to make an assessment of the price as of now.
Do you expect that every year there would be one HVDC project which could be coming out to tendering, or do you think there will be a span it over the next seven to eight years, it won't be over every year?
Yeah, I think for next three to four years, yes, definitely there will be one every year.
Okay, okay. And, given that, you know, Europe has also looking in HVDC, you know, pipeline, do you think the aggression among the companies like GE as well as their competitor would be not so aggressive, or would be comparatively much softer? Or what's your perception over there, sir? Because the pipeline is better in India as well as abroad, so and areas are very helpful.
So, I would see, this is too early to discuss about the bidding strategy, and on a public forum, these things cannot be disclosed.
Okay.
It will be very difficult to comment on what is going to be the competitive strategy as well.
Understood, understood. And sir, secondly, on your strategy on going more towards private, so is there a number that you have in mind that we want certain amount of, you know, business coming from private, for the transformer side? Right now, what is the ratio and what's your target, sir?
So I will not use the word private, but I will say that what we are currently looking forward to is more, for example, customers, where you have a short payment, where you have timely payment coming, where the processes are very well aligned. So if I look at, for example, private corporation, they are like one of the best play masters with a very aligned process, a very defined, and a transparent process. So I think, it's not between a private or a public, so public, it is typically more that, where the process and payments do come on much faster, timelines.
Understood, sir. I wish you all the best and a Happy Diwali to the team as well. Thank you.
Thanks for listening to interview as well.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. The next question is from the line of Shyam Maheshwari from Aditya Birla Mutual Fund. Please proceed.
Yes, hi, sir. Congratulations on a good set of numbers. Just wanted to understand, you know, we had taken an approval for some related party kind of transactions, as per the last annual report. Wanted to check if there has been any update on the same. Have we been, you know, receiving inquiries from those two related parties that you mentioned?
So I think, Hi, Shyam. So if there will be any update, it will be known through, I think we'll be communicating. So as of today, there is no update.
We have taken one. This is Vishal here. We have taken one approval for large order.
Okay.
And that is still under negotiation. It's not yet finalized.
Understood. Okay, that's it from my side. All the best.
Thank you. Next question is from the line of Umesh Raut from Phillip Capital. Please proceed.
Yeah. Thank you so much for the opportunity. Sir, first of all, congratulations on your set of numbers. My first question pertains to competition from Chinese players.
Sorry to interrupt, Umesh. There is some background noise from your end. Your voice is not clear.
Is it, is it fine now? Hello.
Yeah, it is a little better. Please go ahead.
Yeah, sure. So my first question is actually pertaining to Chinese competition and, how it is faring right now. Are you seeing any improvements, coming in from products from China or-
Umesh, we are still not able to hear you. Could you please be either louder or join in from another?
Can I join to answer to?
Sure, sure, Umesh. Thank you.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question, may press star and one. Participants, you may press star and one to ask a question. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. Participants, you may press star and one to ask a question. The next question is from the line of Tanay Rasal from Phillip Capital. Please go ahead.
Hello, sir. Thank you for the opportunity. I just have two questions. The first question, you know, like, in the current scenario, are you seeing any competition from the Chinese players? Are there any products been coming from the Chinese players as such?
No, we are not.
Okay. Okay, so what will be your market share presently for the Chinese players in transformer products?
I think it would be very less because, in our case, in TBCB and other utility segments, Chinese are not allowed to participate, so it will be very minuscule.
Okay. Sir, and given the integration of the renewables, which is in the large scale now, so how do you see the STATCOM opportunity? How big is that opportunity?
So STATCOM, we see as a big opportunity because renewable integration definitely is going to require a lot of STATCOM projects, really, where the large renewable projects are getting connected. Recently, seen one or two projects, which have got finalized. I think going forward, maybe after kind of a six months, eight months time frame, we will see a much larger volumes of STATCOM getting finalized. Sorry.
Okay, okay. Thank you. Sir, you know, like, if you look at the orders on the PGCIL, so what are the areas that you're getting the orders from the PGCIL, and how big that package can be from PGCIL?
We're getting orders from PGCIL, like, for example, we've got orders for transformers, we've got reactors, for projects. We have got one, two, two orders for building the 1 for building a 75 kV GIS substation, one for building a 132 kV GIS substation. So it's basically multiple products, and then from the regionals, we keep on getting orders for products as well. So it's multiple, and it depends upon what kind of requirements. It can be from INR 1 crore to INR 200 crores, anything.
Okay. Okay. Thank you, sir. That's it from my side. Thank you, sir.
Thank you. Thank you.
Thank you. We have our next follow-up question from the line of Janak Lotwala, an individual investor. Please go ahead.
Hi, sir. My question is around the order book participation. When we decide to bid for a certain business or participate, for a certain order or for a business, first, what is our hit rate? And second, what gives us or what is our right to win that order? How differentiates our offering or us from our competition?
So I think, Janak, it is very difficult to define a hit rate, primarily because we have multiple lines of businesses. And, you know, for example, we might sell a relay also, we might sell control panel also, SCADA also, breaker also, project also, transformer also. So it's very difficult. That is one thing. But because different products, different, systems have different competition, different number of players, so it is very difficult to capture the hit rate. Second thing, again, as I said, that, you know, it is very difficult to also tell that what is our entitlement to win that order. But, like, for example, when you go to few utilities, there some utilities will have L1 pricing, some utilities will have kind of a reverse auction, some EPC customers, it's on negotiated basis.
At some places it is a pre-bid agreement also, like with an EPC player, we will say that, "Okay, this is a pre-bid agreement for this scope. If you win, I win with you." So this is basically a different market strategy depending upon different market, different customer, different products. So it's a very dynamic, evolving situation. So it's very difficult to explain it like this is the one bit which defines that, okay, with this bid we will be able to achieve all our objectives.
Got it, sir. I think that's a very well answer, that we are operating in a diverse aspect, but I think that really answers. Thank you, sir, for your,
Thank you, Janak.
Thank you. Participants, to ask a question, you may press star then one. Anyone who wishes to ask a question may press star then one. As there are no further questions from the participants, I'll now hand the conference over to Ms. Tanvi Gupta for closing comments.
Thank you all for joining us today for the GE Vernova T&D India Limited earnings call. We hope the insights provided by our speakers has been informative and valuable to you. We value the trust and support of our investors and analysts, and ensure to remain committed to maintain transparent communications and fostering stronger relationships. If you have any further questions or require additional information, please do not hesitate to reach out to me or our Communications Leader, Anshul Madan, at the mail ID available on company website. Once again, thank you for your participation in today's call, and wishing you all and to your family a happy Diwali festival. We look forward to your continuous support as we embark on this exciting journey ahead. Thank you.
Thank you very much. On behalf of GE T&D India Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.