>Alstom Projects - HOLD (INDIABULLS)

ALSTOM Projects India Ltd. - Hold

# Revenue growth will decline in the near term: APIL has not received any substantial new orders in FY09. Given that most of the orders for the 11th Five-Year plan have already been awarded, we expect the order book to decline in the upcoming quarters. As a result,
we have maintained our revenue contraction to the tune of 15–18% and 4–6% for FY10 and FY11, respectively. Thereafter, we expect revenues to surge, given the potential of the power sector in India.

# Non-conventional energy to act as a catalyst: India has always remained a power deficit country. There is a growing need to not only develop the conventional sources of energy but also develop nonconventional sources such as nuclear and hydro power. The country plans to increase its nuclear power generation from the current 4,100 MW to 52,000 MW by 2020 and APIL is expected to be a major beneficiary of this exercise. This is because we believe that the Company is well equipped to manufacture nuclear equipment by using its existing plant in Vadodara, Gujarat, which manufactures hydroelectric power generating components at present.

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