Bharat Heavy Electricals (500103) Q4 00/01 earnings summary

Executive summary

• FY 2000-01 turnover fell 4.31% YoY to Rs 63,478 million; profit after tax declined 47.85% to Rs 3,126 million amid delayed orders, wage revision costs and VRS charges.

• Orders booked totaled Rs 55,572 million; year-end order book exceeded Rs 100,000 million for execution in FY 2001-02 and beyond.

• Net worth rose 7.3% to Rs 36,018 million; recommended dividend remained 30%, or Rs 3 per share.

Financial highlights

• Turnover was Rs 63,478 million versus Rs 66,340 million in FY 1999-2000; value added declined 6.1% to Rs 26,603 million.

• PBT was Rs 2,941 million versus Rs 8,654 million; PAT was Rs 3,126 million versus Rs 5,994 million.

• EPS was Rs 12.8 versus Rs 24.5; reported earnings included wage revision charges and VRS amortization.

• Exports, including deemed exports, were Rs 16,732 million, down 4.4% YoY; export orders booked reached Rs 7,150 million, up from Rs 7,030 million.

Outlook and guidance

• Year-end order book exceeded Rs 100,000 million, supporting planned execution in FY 2001-02 and beyond.

• Priorities included coal-fired power, transmission and distribution, hydro, after-market services, renovation and modernization, exports, and selected new technology tie-ups.

• National plans for 100,000 MW of additional grid generation over 10 years were viewed as a demand opportunity; near-term investment remained constrained.