Bharat Heavy Electricals (500103) Q4 04/05 earnings summary

Executive summary

• FY04/05 turnover rose 19.32% to Rs 103,364 million; PBT increased 55.85% to Rs 15,816 million and PAT rose 44.85% to Rs 9,534 million.

• Orders booked grew 10.64% to Rs 182,300 million; year-end order backlog reached Rs 320,000 million, up from Rs 236,500 million.

• Recommended dividend was 80% of paid-up capital, including 35% interim; EPS was Rs 38.95, or Rs 39.42 excluding extraordinary items.

Financial highlights

• Net turnover was Rs 95,271 million after excise duty and service tax; gross turnover was Rs 103,364 million, up 19.32% YoY.

• PBT reached Rs 15,816 million versus Rs 10,148 million; PAT was Rs 9,534 million versus Rs 6,582 million.

• Value added grew 15.60% to Rs 42,540 million; cash and bank balances increased to Rs 31,779 million from Rs 26,596 million.

• An extraordinary VRS charge of Rs 179.9 million reduced pre-tax profit; reported EPS was Rs 38.95 versus Rs 39.42 excluding extraordinary items.

Outlook and guidance

• Manufacturing capacity target: increase from 6,000 MW to 10,000 MW annually by March 2007; capacity schemes and modernization were underway.

• More than Rs 11,000 million of capital investment was planned for the 10th Plan; about Rs 3,100 million was planned for FY05/06.

• India’s XI Plan power capacity addition was projected at over 60,000 MW, supporting expected equipment demand; the 2005-06 MOU rating remained under Government finalization.