Bharat Heavy Electricals (500103) Q4 03/04 earnings summary

Executive summary

• FY2003-04 turnover rose 15.77% YoY to Rs 86,625 million; PBT increased 26.47% to Rs 10,148 million and PAT rose 48.08% to Rs 6,582 million.

• Orders booked increased 46.77% to Rs 164,775 million; year-end order book reached Rs 236,500 million, up from Rs 158,000 million.

• Board recommended a 60% dividend, including the 30% interim dividend already paid; proposed total dividend was Rs 1,469 million.

Financial highlights

• Revenue from products and services was Rs 86,625 million versus Rs 74,822 million in FY2002-03; value added rose 13.32% to Rs 36,800 million.

• PBT was Rs 10,148 million versus Rs 8,024 million; PAT was Rs 6,582 million versus Rs 4,445 million.

• Gross margin as a share of value of production, net of excise, rose to 16.14% from 15.21%; PBT share rose to 12.87% from 11.70%.

• Cash and bank balances, including short-term deposits, increased to Rs 26,596 million from Rs 13,209 million; net worth rose 12.10% to Rs 52,781 million.

• Earnings per share was Rs 26.89 versus Rs 18.16; excluding extraordinary items, EPS was Rs 36.28 versus Rs 24.44.

Outlook and guidance

• Year-end order book stood at Rs 236,500 million; power orders totaled Rs 126,785 million and industry orders Rs 35,670 million in FY2003-04.

• Planned FY2004-05 capital investment was Rs 1,815 million; the 10th Plan investment target was Rs 9,000 million, with Rs 2,881 million spent in its first two years.

• Capacity expansion for thermal and hydro sets was envisaged in response to higher market requirements; investment priorities included modernization, quality, new technology and cycle-time reduction.

• Domestic electricity policy targets, power-sector reforms and infrastructure investment were expected to support demand; developing Asia and Middle East markets were identified as growth opportunities.