New orders have also declined 22 per cent to Rs 838.3 crore for the current year, compared with Rs 1,073.2 crore last year. According to a company release, the decline is a result of the economic slowdown. A marginal increase in orders from power generation, transmission and distribution, and railway transportation systems offset this to some extent. A major reason for the lower losses reported this year is decline in interest cost from Rs 124.3 crore for the 18-month period last year to Rs 46.6 crore. Better asset management and lower borrowing costs contributed to this decline.

The lower losses reported this year are a result of a restructuring exercise carried out by the company. A voluntary retirement scheme (VRS) hasreduced the size of the work-force from 5,775 employees last year to 5,228 employees at present.

The company has launched a four-point restructuring programme which includes rationalisation of business processes and introducing various efficiency improvement programmes.