2007-2008 - Cgglobal.com

Key Performance Indicators of
CG Power
GROSS SALES of CG Power increased to
Rs.48,243 million in 2007-08 — a growth
of over 21% during the year, on the back
of a 43% growth during the previous
year. This translates to US$ 1.20 billion of
revenue.
PBIT (profit before interest and taxation)
of CG Power increased by 34% to Rs.4,372
million in 2007-08.
ROCE Despite a 13% growth in capital
employed, CG Power’s ROCE (return on
capital employed) grew from 27% in
2006-07 to 31% in 2007-08.
UEOB (unexecuted order book) increased
by over 14% to Rs.46,535 million as on 31
March 2008 (US$ 1.16 billion).
CHART
B
Consolidated Sales of
CG Power
RS. MILLION
21%
48,243
TABLE
01
WE VALUE CUSTOMER COMMITMENTS THE PICTURE DEPICTS
COMBINED FINANCIAL PERFORMANCE OF CG POWER
YEAR ENDED 31 MARCH, IN RS. MILLION FY 2007 FY 2008 GROWTH
GROSS SALES 39,896 48,243 21%
PBIT 3,272 4,372 34%
CAPITAL EMPLOYED 12,305 13,959 13%
UNEXECUTED ORDER BOOK 40,694 46,535 14%
NOTES Microsol was acquired on 28 May 2007. Therefore, the consolidated figures for 2007-08 is including 10 months for Microsol.
Figures for 2006-07 have been regrouped wherever necessary in order to make them comparable with those of 2007-08.
39,896
FY2007
FY2008
The key performance indicators of CG Power
are detailed in Table 1 above. This includes the
performance of CG Power’s Indian operations,
as well as that of the international divisions:
Pauwels, Ganz (excluding motors) and Microsol.
Global statistics suggest an enormous growth
potential for the CG Power business. Here is
some data:
$ The International Energy Agency estimates
that between now and 2030, world demand
for primary energy will rise from 11.4 billion to
about 17.7 billion tonnes of oil equivalent, and
74% of this increase would be accounted for by
India and China.
$ The current per capita electricity
consumption in India is at 625 kWh, versus
12,200 kWh in the US and 2,150 kWh in China.
Moreover, peak shortage of power in India
has increased from 12% in 2003 to over 16% in
2007-08. Thus there is considerable head room
for growth in the power sector — and with it,
the demand for transmission and distribution
equipment and solutions.
Given the synergies of size, global reach,
operational excellence and technical expertise
within CG Power, this SBU of Crompton Greaves
is well poised to exploit these opportunities and
continue with its double-digit growth in the
coming years.
FINANCIAL PERFORMANCE: THE
INDIAN POWER SYSTEMS BUSINESS
The performance of the standalone Indian
Power Systems operations for 2006-07 and
2007-08 is given in Table 2.
CG Power’s Indian operations showed a
topline growth of 13% over last year to reach
Rs.19,633 million. This translates to a 3-year
CAGR of 27%. Year-on-year PBIT grew by 40% to
Rs.2,577 million.
10 ANNUAL REPORT 2007–2008 CROMPTON GREAVES LIMITED