Thank you very much. We will now begin the questio n-and-answer session. Anyone who wishes to ask a question may press ‘*’ and ‘1’ on their touchtone phone. If you wish to remove yourself from the question queue you may press ‘*’ and ‘2’. Participants are requested to use handsets while asking a question. Ladies and Gentlemen, we w ill wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar from ICICI Securities Limited. Please Go ahead.

Good Evening Sir, Congratulation for the good quarter . My first question is the order inflow, of course last year was stupendous. But as you go forward how do you see the next 12 months from ordering point of view, given the sharp bidding activity in interstate transmission system?

Thank you for the question and yes, the momentum which has been built in the past year in terms of order intake, we expect the momentum to be there . We are looking and closely monitoring the situation because we see a number of transmission projects which are under finalization now where the reverse options and things are happening. So, we are looking at the sustained ‘24-25 as well.

My second question is, I believe that we do not have any STATCOM under installation in India. Are we in the process of indigenizing the STATCOM an d start looking at this opportunity in future?

Yes, you are right Mohit that today we don't have a STATCOM order which we are executing in India but definitely globally we have a portfoli o of STATCOM, recently there was announcement of GE has won one STATCOM in Taiwan as well. So yes, we are closely watching this market and then we are engaged with f ew customers as well. So yes, we will be present in this segment as well.

But can you execute right now or you can't execute now, if any order is available, you can't take it now, is that a fair assessment?

: We can take and execute.

Okay, Understood Sir. My third question is given that there's a large 3-4 HVDC lines which are about to be tendered from the starting for next couple of months to the Leh-Ladakh. Is it fair to assume that we can execute at least two of them at one instance or do you think that it is too large, and we can only do one?

Understood Sir. Thank You and all the best.

Thank You. The next question is from the line of Parikshit Kan dpal from HDFC Securities. Please go ahead.

Hi Sandeep. Congratulations on a great quarter and the year. My first question is on the order bookings from the parents. If I remember correctly, last year last call we had said that total exports of 1,600 crores, 1,200 crores were related party orders. And we had taken approvals of almost 2,800 I think 1,000 earlier and then later on we followed up with another 1,800 crores of orders. So just wanted to understand from the order ing point of view what has been closed out of the new 2,800 crores of RPT approvals we have taken in this financial year and how much of these orders are expected to come in FY25?

When we talk about the export segment and this time as I mentioned, we have done about 18 billion of orders from the export segment out of the total 57 billion of order bookings. And you rightly mentioned that almost 65% to 75% are coming from the related party or the group entities. In terms of the subsequent approval that we had taken as a related party, those contracts are still under discussion and negotiation and the related parties or the other group companies are participating in further tenders with the third parties. If they win and we are able to negotiate with the related parties, we expect to have a momentum in the first half of this financial year.

Okay. Again, second thing is that we have seen our parent s the Vernova electrification equipment business, the order backlog has been growing, like from CY21 of $5 billion now it is almost at $13 billion at the end of CY23 and at the end of 1Q CY24 it's already 18 billion. So, do you think that this trend of related party transactions on the other booking sides, we will see continuous uptrend on this at least in the near ter m given under-investments in the capacity building globally?

The market is strong globally as well as in India a nd wherever we get the opportunity we continue to focus on that and convert that opportun ity into order. As and when we get further opportunities from the related parties, we definite ly would like to have more and more orders from the related parties.

Will these orders be at a better margin, given you have mentioned in the past that export orders do have better margins? So, when we take now these export orders are sizable from the parent point of view at 65% which you highlighted 65% to 7 0%. But are these margins dilutive to the India business or will have similar or better margins?

Yes, generally the export orders margin are better than the margins that we get in the India business historically. But India market, the pricing is also improving and the margins are also becoming better. So, depending on the deal or the b usiness line in some business lines we will get better margin at the India level as well.

And just the last question, on this HVDC side, recen tly I think BHEL on today's call said that they have entered the joint venture with the intern ational Company. So, is it GE or if not then whether are we looking at tying up or for HVDC in a joint venture or directly bidding for these orders?

So Parikshit, we will not be able to confirm or den y anything because these are all individual strategies in the market.

But we are open to directly bidding also, are we ope n with both the options looking at the joint venture with anyone else or also directly bidding?

I will not comment on that whether we are bidding i n consortium or whether we are bidding alone. But yes, we are very serious and we will be an important player in HVDC in India.

And Sushil just one thing on this tax, there is a high outgoing tax this quarter, especially the tax rate is high. Is there any one-off, you have taken some tax provisioning for previous years? If you can help us clarify why the tax rate is so high in this quarter.

So, as you see the profit and loss statement that we published to stock exchange, we have already classified 85 million of tax related to the earlier year as a separate line item. So that's a one-off item.

But what is the reason behind it? So, I just wondere d. I've read that note but what was this pertaining to? Was there any assessment or anything?

Yes, it's pertaining to the review of the available tax balances and the probability of getting those from the tax authorities’ basis the internal as wel l as external opinion that we have taken. But I can confirm that this is a one-off item in the P&L.

Okay. Thank You Sir and wish you the best. Those were my questions.

Thank You. The next question is from the line of Renu Baid from IIFL Securities. Please go ahead.

Hi, Good Evening team and congratulations for a ve ry strong performance. My first question is just to understand on a broad basis, now that you mentioned Vernova is separately spin off entity, does it have any material implication on the way the operations have been run at GE T&D India or any strategic decisions for the India entity or business remains the way it was there until last quarter or so?

Operationally and strategically at least I can say that the business remains as it is. But the advantage of for example when it was a very larger GE, but today when it becomes Vernova we are a very energy focused Company. So definitely wi th time probably because we are just very new like 2 nd of April, we became Vernova and today we are in Ma y. But I think with a lot of other businesses of Vernova, we will now be looking at more operational, how to integrate and try to address more markets. That will be a strategy which we will be exploring in time.

Secondly from an order book perspective, I know you 've commented earlier, but if you see it's the highest inflows in the past decade that the India entity has secured and order backlog also in absolute levels is back to 2019 levels. So, ex of t he HVDC export order which you mentioned was a longer gestation cycle project, what would be the average execution of the current backlog that we have excluding the HVDC export?

So, depending on the product that we sell, it ranges from 12 to 24 months.

Got it. And on this backlog also especially the last 6 mont hs at least domestic market has been extremely favorable for the equipment vendors and pricing has seen material improvement. So, you think the gross margin that you were able to report in fiscal ‘25, 35% which was a reasonably healthy level, that should be maintainable or you b elieve there could be some headroom for improvement from further on from these levels as well given that business is still product heavy compared to projects?

I will say here that business as a strategy we are more product heavy than project. So, this is one change in strategy what we have done and in the various investor call we have been telling that this is the strategy. That is one thing. And yes, d efinitely the whole organization works for the improvement of margin. It is not that at whatever w e have won is something that we are happy with it. So, through lean, through sourcing savings, through risk mitigation, all the levers are put into place to improve the margin. So, I think we are pretty confident that yes, we should be able to do a much better ‘25.

Related to this one more question, lastly on this side, in the last conference call we did highlight that potentially the India entity could win another 1,000 crores kind of order from the group for HVDC exports and we were expecting it somewhere arou nd April-May. So, is that order very well on cards and could be expected in the near term or it would be again subject to certain wins from the parent group entity?

So, Renu I answered this question when Parikshit asked the same question. First of all, just as a clarification, we didn't declare,, that it's an HVD C order. It is for various products that we manufacture in our factories. The second part as I mentioned, it is subject to wi n by the related parties from the customer as well as internal confirmation by GE T&D from the gr oup entities because we are not the only one who manufacture this product. But yes, we are w orking seriously on order and we are basically trying our best to get more orders from t he export market as we have been focusing both directly as well as export market to increase our order books and utilize maximum capacity of the plants that we have. Just to add on the time line remains same that in the first half of the financial year we will have the outcome of this decision.

But strategically if we see, which other product lines within our fold you think may have a higher chance of winning fresh mandates from the parent ap art from HVDC range given that globally this value chain and supply chains for a lot of power grid equipment are stretched and in addition to the product lines which new markets in your view may open up for India the way the Korean markets have opened up recently through the parent entity? That's the last question from my side.

So, Renu, here I think one of the things is that yes, definitely the markets are opening up because the energy transition story is very strong in many geographies and so we are getting allocated newer markets which are there. And definitely we are looking eagerly towards the outcomes of these decisions which are there which is pending with the end customers. That is one thing. And second, when we talk about HVDC, it is not only the transformers but as Sushil said that we have never said that these are only like HVDC opport unities which are it could be normal substation product opportunities as well. And for a product different like the AIS, GIS there is a good amount of localization done in the country its elf. So, we are not so heavily dependent on the outside supply chain. Definitely there will be few critical components which are going to come from the offshore vendors. But then a large par t of those supply chains are also localized which makes the challenge bit less. I would not say that it's totally like a zero challenge but it really reduces the challenge in terms of the supply chain as well for the other products.

Got it. Thank You so much and best wishes Sir.

Thank You

Thank You. The next question is from the line of Moksha from A gility Advisors. Please go ahead.

I wanted some clarity on these STATCOM part. How bi g is this opportunity for STATCOMs in India?

We are looking at about—close to in next 2 to 3 yea rs we are looking at about—15 to 20 STATCOMs to be put in India. And individually I think one project would be some, it depends upon rating because the ratings of STATCOMs are diff erent. So that's why the total configuration would be totally different. But each S TATCOM project can range somewhere between 250 crores to about 500 crores.

I would ask a few more questions on the STATCOM basically. So, where is this required in the entire value chain? Where is it placed in the entire power value chain?

So, are these going to be installed in the new tran smission lines for those renewable energy or will these be replaced?

They will be new. So, for example the new substations which are coming under TBCB, there at the exit substations, along with the substation the STATCOMs are being installed.

So, these are basically installed with these substations?

Right.

In the transmission as well as distribution or just the transmission substations?

Only transmission.

How was this requirement of STATCOM fulfilled earlier in India?

When the generation was lower from the renewable sources, anyways reactive power compensation was not needed to this level. So earli er the sources were mostly fossil fuels, thermal power generation, and hydro. There you don't need these STATCOMs for compensation to this level. With the renewable power coming into play, now the requirement of reactive energy has gone up. So, you need dynamic devices just like STATCOM to enable that flow of energy. So, this is something which is because of huge spur in growth of the renewable generations.

So, is it just, like the STATCOM that are getting in stalled, is it there's a mandate or something that has to be made or it's just a requirement?

This is a mandate which is coming from the grid operators as well, that along with the substation you need to put the STATCOM.

Are there any alternatives for the same currently which are being used or which can be replaced?

So, there are other technologies which are there gl obally but in India no, the STATCOM is the preferred technology.

Thank You so much, Sir. These were my questions.

Thank You Moksha

Thank You. The next question is from the line of Jonas Bhutta from Birla Mutual Funds. Please go ahead.

Good Evening, Gentlemen and thank you for the oppo rtunity and congratulations on a great set of results. Couple of questions, Sandeep. Basically, while we appreciate that the shade of the business has become product heavy in the last few y ears, what would be the broad breakup of sales between products and projects as we speak?

Please give me a minute to get the information.

And if I can just carry on while you get that data. Additionally, I just wanted to understand if at all we were to sort of split the project side, would transformers and switchgears be the two major key products within that subset?

Normally switchgear is a part of the projects which we deliver but transformers are not part of the projects normally we deliver because today all these, whether it is utility, private customers they buy transformers, reactors separately and projects separately.

And what would be our nameplate capacity for transformers after we exited Naini?

So, what happens is that “how many & what complexi ty” of transformers you manufacture depends. Suppose for example maybe an HVDC transform er when you manufacture, maybe it might be a 300 MVA but the cost of that 300 MVA transformer would be like for a normal 765 kV, it would be about 3X of that cost. So MVA is no t basically, of course it's a very high-level reference which is there but actual reference is th at what kind of rating and how many transformers and reactors combination including HVD C, including for example STATCOM, it all depends upon complexity and the different, for example a three phased 500 MVA, single phase for 500 MVA is very different. So that's why we say that we don't want to measure ourselves in terms of MVA capacity.

I would have assumed that it would be 18,000 to 20, 000 MVA. Is that a ballpark range where we are on an installed capacity basis?

Yes, I would say that's a fair guess.

What I was trying to triangulate to was that at some point in time I think a couple of years back, you mentioned that as an entity as we move to products, we would do peak revenues of anywhere close to Rs. 40 billion to Rs. 45 billion. We are at about 31. Given the shade of the order book and the sales mix which is HVDC heavy and progressiv ely will get HVDC heavier, you think that 2 years, 3 years out that number could be brea ched just because from a sales mix perspective?

This will be a forward-looking statement and we w ould like not to comment on this.

The second question, do you want to give the breaku p of the project versus product or can I proceed to my second question?

The second question and I am going to harp on the HVDC bit is, from a competitive positioning if you see one of your MNC peers has tied up with a local player and combined they would probably have (+50,000) MVA capacity to sort of cat er to for an HVDC project while we on a standalone basis, along with the parent who's alrea dy choked with orders is in fact reverse outsourcing to us. Does that put GE T&D at any disadvantage from just the sheer timelines that it can deliver a particular project? The early-stag e projects of Fatehpur-Bhadlaa and Khavda- Nagpur, we may have open capacity maybe for Le-Lada kh and Khavda-Olpad. But at least in the first two projects, do you believe that you are at a disadvantage in that sense?

I will not say that we are at a disadvantage because at the end of the day, normally if you would have seen our path. So normally we are not trying t o build a further risk into the Company. So, we will be attempting and we will be targeting projects which are within our capacities only. But I will not be able to comment today that whether we are at a disadvantage or whether we are at advantageous position because HVDC is not only trans former capacity but there are a lot of other factors also included in an HVDC project which includes the global loading factors and other factors as well. Also, the amount of localiza tion, so there's a lot of factors which are involved into an HVDC I would say, pricing and thing s like that. So, on the competitive side it will be very difficult to comment.

And just last quick one Fatehpur- Bhadla since the b ids have been put in, what is the execution timeline as per the bid as intender?

It is 48 months for the first 3,000 MW and 54 months for the next 3,000 MW.

Understood, Thank you and all the very best.

Thank You Jonas

Thank You. The next question is from the line of Prathmesh Sal unkhe from PL Capital. Please go ahead.

Good Evening Everyone. Thank you for taking my que stion. I had a question on the capacity side again. So, saying we had like 18,000 to 20,000 MVA variable capacity. Just wanted to know, are there any capacity expansion plans in the books right now?

This was not what I said that it is 18,000 to 20,00 0 but Jonas’s view is that we have 18,000 to 20,000. So, we have a very globally if you are foll owing GE Vernova, there is a very strong culture of lean implementation through which we kee p on working on how to expand the capacity through debottlenecking and through improv ement of process flows and things like that. So, we keep on working on those things and we also keep identifying what are the bottlenecks. And then trying to see how this can be addressed to expand the capacity.

Okay, I Understand. Just wanted to know is there any capital expenditur e plans or not capacity expansion but anything else?

So, if that will be there then we will be anyhow de claring that officially to all our shareholders at the same time. We would not like to comment anything on an investor call on this subject.

I Understand. I wanted to know the capacity utilization for specifically Vadodara plant because if I am not wrong all the transformers come from our Vadodara plant. So I wanted to know the...

I would say that it is pretty occupied, but it is very difficult to comment in terms of whether like it is 92%, 72% or 62%. So, there are a lot of operational efficiencies which we measure but from a market perspective, it is very difficult to comment on such numbers.

Okay so it’s pretty high. More than 90, would you say?

That I will not say.

Okay, Got it. Thank you so much for taking my questions.

Thank You. Just a reminder to all the participants if you have any questions you may press ‘*’ then ‘1’ now. The next question is from the line of Inderjeet Singh Bhatia from HDFC Securities. Please go ahead.

Thanks Gentlemen for the opportunity. Few question s from my side. First is you mentioned projects being 30% of the order book right now. What was the corresponding number at the start of the last financial year?

Mr. Inderjeet, the question was how much of the revenue comes from the project business in the last financial year. So, it was revenue number of 30% not the order book number of 30%.

Would the order book mix be similar now, 30-70?

It will be lower. I don't have the exact number, but it should be lower.

In I think Quarter 3 call you had talked about revenues catching up with your very strong order book growth from Quarter 1 onwards. Is that still o n track because last year we've done 14% revenue growth while orderbook growth is very significant compared to that?

So, I will answer it differently. I think year-on-year comparison of 14% is one dimension to look at this number. But the other dimension is to also look at from the last year same quarter wherein we have delivered 30%. And if you look at last few quarters, then every quarter we are delivering higher revenue than in the past. So of course, we h ave INR 63 billion of order backlog which has a specific execution timeline as per the custom er contract. In the earlier question we explained also the timeline, it ranges from 12 to 2 4 months. This is the customer contract with will definitely be executing and hopefully we should be looking to increase our revenue as much as possible as per the contract timeline.

One question on the cost structure, if I look at on a quarterly run rate, your staff cost and your other operating expenses roughly around 200 odd crores. What part of this is fixed cost and how much is variable out of that. I am assuming staff i s definitely fully fixed. The staff would be fixed I am assuming, and then other operating expen ses would have mixed that. Can you share any color on the breakup between fixed and variable?

The other extent I don't have immediate breakup, but we can on a very high level take about 50- 50 ratio.

On a manpower wise how are we staffed right now? Do we need to kind of ramp up recruitment very significantly or we are well staffed for the order book that we have?

So, I would say that we are adequately staffed. But depending upon the orders what we are taking and things like that, there is a plan which is always under a review. And whenever we think that we are going to need people there is a plan toward that.

One last question from my side. I am sorry to nitpi ck, but just looking at a quarterly trend especially in the last two-three quarters. Our gros s margins were around 36% in Quarter 2 and Quarter 3. They've come off to 33% in Quarter 4. Is there anything to read in it? Any one-time or any legacy orders getting closed or any mix change?

This particular analysis we have been talking almost every quarter that in terms of gross margin it's better to look at the entire year performance. On a full financial year basis, we achieved a gross margin of about 34.5% which was 5.5 percentage points higher than the last financial year. Every quarter it depends on the mix of different bu sinesses that we do different products and different contracts. So that can vary a little bit. But overall, we have made a very significant 5.5 percentage point improvement in the gross margin in the entire financial year.

Definitely. Thanks a lot and best wishes for the future and congratulations on great numbers.

Thank You. Participants you may press ‘*’ and ‘1’ to ask a question. The next question is from the line of Dhruv Aggarwal from Niveshaay Investment Advisors. Please go ahead.

Good Evening Sir. I have just two basic questions. Firstly, I wanted to understand that if in an EPC project suppose the project size is 2,000 crores in the transmission segment, then how much cost is incurred on the towers, cable, and wires on the substation in that 2,000? If you can give the rough idea.

Dhruv it will be very difficult to give a rough i dea because different projects have different combinations. For example, if it's a 400 kV or is it 765 kV, if somewhere the substation is smaller maybe 1500 MVA, somewhere it is 3000 MVA. Somewhere the lines are longer, somewhere the lines are shorter. So, this is a very project s pecific breakup which is there. You cannot just simply take a value and then say th at ‘okay’ this is going to be the breakup in that.

The second question will be on the STATCOM, while se tting up these substations, what percentage of cost would be or what percentage of a mount would be spent on this STATCOM as a percentage of total cost on setting up this substation?

So, that's what I said that the STATCOMS are gett ing ordered separately and substations are getting ordered separately. So that's what I said that depending upon the STATCOM rating each STATCOM would be somewhere between 250 to 500 crores.

This is a broader range. Can you just quantify in terms of percentage if it would be possible for you?

So substation is not included in the STATCOM.

So, it would be set up on which side, like you said on the renewable side the STATCOMs are set up. So, can you just quantify where would be this?

So, you are asking me that where the STATCOMs will be set up?

Yes.

So, you have a lot of projects like you have in K havda, you will have in Bikaner-Bhadla, South Olpad. So, lot of wherever renewable substations ar e coming STATCOMs are coming with them.

And which companies are setting up these STATCOMs? I s this the only GE T&D Company setting up the STATCOMs or is there any some other p layers also setting up the STATCOMs as well?

There are other players as well.

Okay. Fine Sir. Thank You.

Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Ms. Megha Gupta for closing comments.

Thank you all for joining us today. We hope the in sights provided by our speakers have been informative and valuable to you. We value the trust and support of our investors and analysts and ensure to remain committed to maintain transpar ent communication and fostering strong relationships. If you have any further questions or require additi onal information, please do not hesitate to reach out to me or our communications leader. Once again, thank you for your participation in today's call. We look forward to your continued support. Thank you.

Thank you. On behalf of GE T&D India Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.