Ahuwalia Contracts (India) (532811) Q4 11/12 earnings summary

Executive summary

• FY12 revenue was Rs 137,453.05 lakh and net loss was Rs 4,063.15 lakh, versus profit of Rs 7,078.61 lakh in FY11; no dividend was recommended.

• Execution delays, higher input and financing costs, and weak demand pressured margins despite an order backlog of Rs 5,736 crore at March 31, 2012.

Financial highlights

• Revenue from operations was Rs 136,361.02 lakh in FY12 versus Rs 168,955.41 lakh in FY11; total revenue was Rs 137,453.05 lakh versus Rs 169,576.41 lakh.

• Operating profit before interest and depreciation was Rs 2,444.67 lakh, down from Rs 15,709.59 lakh; PBT was a loss of Rs 4,050.84 lakh versus profit of Rs 10,750.75 lakh.

• Net loss was Rs 4,063.15 lakh versus net profit of Rs 7,078.61 lakh; basic and diluted EPS were both negative Rs 6.47 versus Rs 11.28.

• Consolidated total revenue was Rs 145,818.28 lakh versus Rs 176,083.87 lakh; consolidated net loss was Rs 4,642.93 lakh versus net profit of Rs 7,205.27 lakh, with EPS at negative Rs 7.40 versus Rs 11.48.

Outlook and guidance

• FY12 turnover growth was expected to remain at a similar level in the current financial year; improvement was anticipated from FY2013-14 onward, conditional on macroeconomic conditions improving.

• Priorities included winning government and private contracts, increasing execution, using escalation clauses in new material contracts, controlling costs and capex, and reducing working-capital needs.

• Planned measures also included settling or arbitrating claims, using or hiring existing equipment rather than buying new machinery, and selling surplus assets to improve cash flow and lower interest costs.