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CG’s earnings before interest, depreciation, taxes, and amortisation (EBIDTA), including ‘other expenses’ but without ‘other income’, was I470 crore in FY2017. This was 9.3% higher than the comparable number for the previous year. 5WTĂ YX GJKTWJ YF]JX 5'9 J]HQZINSL ¡TYMJW income’ reduced by 26% to I132 crore. PBT including ‘other income’ but without exchange gain / loss and exceptional items was I201 crore in FY2017, versus I290 crore in the previous year. Including YMJXJ FX \JQQ FX YMJ XMFWJ TK UWTĂ Y TW loss from joint ventures and associate companies, PBT for FY2017 was I ÂHWTWJ [JWXZX I180 crore in FY2016. 5WTĂ Y FKYJW YF]JX 5&9 KWTR HTSYNSZNSL TUJWFYNTSX NSHQZINSL XMFWJ TK UWTĂ Y TW QTXX in associates and minority interests was I110 crore in FY2017, versus I HWTWJ NS the previous year. PAT from discontinued operations was I(601) crore in FY2017, compared to I HWTWJ NS +> Overall PAT—for continuing and discontinued operations taken together— was I(491) crore in FY2017, versus I ÂHWTWJ NS YMJ UWJ[NTZX ^JFW Earnings per share (EPS), basic, from both continuing and discontinued operations was I(7.83) in FY2017 compared to I(7.33) in the earlier year.
POWER SYSTEMS BU Power Systems is the Company’s largest BU and focuses on power transmission, distribution, power solutions, setting up of integrated power systems and associated services businesses. It manufactures a wide range of power and distribution transformers, extra high voltage (EHV) and medium voltage (MV) circuit breakers, switchgears, EHV instrument transformers, lightning arrestors, isolators and vacuum interrupters. In addition, it offers turnkey solutions for transmission and distribution 9 ) YMWTZLM XZG XYFYNTS UWTOJHYX engineering, procurement and construction *5( FX \JQQ FX TYMJW JSI YT JSI HTSYWFHYX involving the entire value chain—solutions, design, products, procurement, construction, erection and servicing. A detailed list of CG’s Power Systems BU products, solutions and services as well as its associated facilities is given at the end of this Annual Report.
POWER SYSTEMS BU: CONSOLIDATED FINANCIAL PERFORMANCE The consolidated performance of CG’s Power Systems BU is given in Table 1 in this Report. • The unexecuted order book (UEOB) increased by 4% to I3,808 crore. • Revenue of CG Power grew by 7.6% to I3,739 crore. • EBIDTA (including other income) rose by 13% to I HWTWJ • EBIT grew at an even higher rate of 17% to I384 crore. • Despite a 3.6% increase in capital employed on account of necessary investments, the return on capital employed (ROCE) increased by 2.4 percentage points to 21.3% in FY2017. If there is a clear signal that one can get from Table 1 in this Report, it is that CG’s Power Systems BU’s continuing businesses have started generating better results. In FY2017, the rate of growth of EBIDTA was higher than YMFY TK WJ[JSZJ YMJ WFYJ TK LWT\YM TK *'.9 \FX MNLMJW YMFS YMFY TK *'.)9& FSI IJXUNYJ a rise in capital employed, the ROCE was up by 2.4 percentage points over the previous year, to 21.3%. Hopefully, this positive trend will continue in FY2018 and thereafter.
POWER SYSTEMS BU—KEY DEVELOPMENTS IN FY2017 The product lines for CG Power Systems BU are: power transformers, switchgears and distribution transformers. The Indian power transformer market is expected to continue growing, thanks to the demand by the Power Grid Corporation of India Limited (PGCIL), the National Thermal Power Corporation (NTPC) and some State Electricity Boards. Moreover, dedicated freight corridors of Indian Railways will create additional demand for trackside transformers. In distribution, under the Ujwal DISCOM Assurance Yojana (UDAY) scheme, the HJSYWFQ LT[JWSRJSY NX YFPNSL T[JW TK YMJ IJGY TK T[JW QJ[JWFLJI HFXM XYWFUUJI DISCOMs in various states, subject to these entities agreeing to adequately raise YMJ UWNHJ TK JQJHYWNHNY^ XZUUQNJI YT YMJ à SFQ consumer. This ought to clean the books of many DISCOMs and State Electricity Boards which, in turn, should create headroom to generate additional demand for distribution transformers.
A
GROSS REVENUE FROM MAIN BUSINESSES (I crore)
POWER
INDUSTRIAL
6000
4000
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Gross revenue
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FY 2016
FY 2017
Chart A plots the changes in gross revenue of the main businesses. • CG’s gross revenue from the Power Systems business increased by 7.6% between FY2017 and the previous year. • Gross revenue from the Industrial Systems business grew by 11.4%.
MANAGEMENT DISCUSSION AND ANALYSIS 17