Electrical equipment manufacturers seem to have survived the global slump with minor scars. Price realisations, as measured by the wholesale price index for this subgroup, held on till around the end of November 2008, wilted thereafter, and dropped 5 per cent in the subsequent four months of the last fiscal. The first three-and-a-half months of the current fiscal has seen a nominal decline in WPI. Obviously, massive power sector additions, though short of target, remains robust enough to provide a healthy market for power equipment manufacturers.
The total net sales/operating incomes of six major power equipment companies increased 14 per cent during Q1 of 2009-10. The total net profit of these companies increased at twice this pace over the 12-month period. As their business is largely with government and PSUs, the companies were spared liquidity crunch. In fact, Siemens and Crompton Greaves Ltd earned more interest than what they paid out. While the six companies derived maximum incomes from the electrical machinery business, automation and process automation (ABB), industry and healthcare (Siemens), industrial systems and consumer products (Crompton Greaves) and environmental products (Thermax) were the other segments that contributed to respective corporate sales and profits.
Among the companies, Alstom Projects India turned out excellent results that saw 38 per cent rise in sales and doubling of PAT in Q1. Bharat Heavy Electricals Ltd was consistent with 31 per cent rise in net sales and 22 per cent in PAT. The net profit of Siemens shot up cent per cent, helped by a 7 per cent decline in material consumed, which happened despite the 6 per cent rise in net sales/operating income. The PAT of Crompton Greaves soared three times the pace of net sales due to tighter control over costs.
The net profit of ABB dropped 37 per cent in view of a decline in net sales and a nine-fold jump in financing cost. Thermax saw decline in its top line and bottom line during Q1. |