Shares of GE Power India were locked in their 20 percent lower circuit at ₹190.65 per share on the BSE on Thursday after the company posted weak results for the December quarter. It was also trading at its 52-week low.
The firm reported a net loss of ₹34.12 crore in Q3FY22 as against a profit of ₹35 crore in the year-ago quarter.
Its total income during the quarter under review fell 30 percent to ₹798.29 crore versus ₹1,143.13 crore in the year-ago period.
"This was the strongest quarter for core services in the past couple of years. We have booked orders worth ₹961 million ( ₹96.1 crore), including a significant mill's spare parts order for the year from NTPC Rihand. We have seen a 65 percent growth in Q3 compared to the previous quarter in core services and this was the highest quarterly intake in the FY," Prashant Jain, managing director of GE Power India, said.
However, the finalisation of key orders in upgrades got postponed due to the deferment of the customer's outage schedule, he added.
The firm also announced recently that GE Steam Power has planned to decrease its stake in the firm and slowly part ways with the company as its promoter in the next three years.
GE Power received a letter from GE Steam Power on February 8, 2022, stating its intention to reduce its stake in the company and de-promoterise within 36 months, which will be implemented in a staggered manner, according to a BSE filing.
GE Steam Power has stated in the letter that this aligns with GE's previous announcement in September 2020, to pursue exit from the new-build coal power market.
As per the letter, through this transition, GE Steam intends to strengthen the company to operate independently from GE Power and achieve its long-term growth plans.
GE Steam also intends to engage in discussions with the company to enhance GE Power India's operational performance and help the company to grow its order book and serve shareholder interests, the filing further stated.
In the last 1 year, the stock of GE power has lost around 15 percent as compared to a 14 percent rise in BSE Sensex. The stock had hit a 52-week high of ₹371.80 per share on June 22, 2021, and a 52-week low today.