Bharat Heavy Electricals (500103) Q4 01/02 earnings summary

Executive summary

• FY02 turnover reached a record Rs 72,866 million, up 14.79% YoY despite a slowdown in capital goods; profit after tax rose 49.69% to Rs 4,679 million.

• Orders booked increased 77.34% to Rs 98,553 million; year-end order book stood at ~Rs 125,000 million for execution in FY03 and beyond.

• Recommended dividend of 40% on paid-up capital, equivalent to Rs 4 per share.

Financial highlights

• PBT was Rs 6,628 million vs Rs 2,941 million YoY; PAT was Rs 4,679 million vs Rs 3,126 million.

• EPS rose to Rs 19.12 from Rs 12.77; net worth increased 17.17% to Rs 42,203 million.

• Export turnover, including deemed exports, increased 50.07% to Rs 25,110 million; value added rose 15.55% to Rs 30,740 million.

• Gross margin as a share of production value increased to 13.77% from 8.06%; PBT as a share of production value rose to 9.82% from 4.78%.

• VRS amortisation of Rs 19,999.61 lakh was recorded as an extraordinary expense; FY02 accounts also included a Rs 30,461.80 lakh deferred tax asset.

Outlook and guidance

• Order backlog of ~Rs 125,000 million supported execution into FY03 and beyond.

• Growth initiatives targeted power generation, transmission and distribution, transportation, industrial systems, after-market services, R&M, exports and IT-enabled services.

• Planned capital investment of ~Rs 7,000 million during the 10th five-year plan, with emphasis on gas turbines, hydro, nuclear, oil-sector and R&M opportunities.