Bharat Heavy Electricals (500103) Q4 99/00 earnings summary

Executive summary

• FY 1999-2000: turnover declined 2.37% to Rs66,340m and PBT fell 7.18% to Rs8,654m; PAT rose 10.06% to Rs5,994m, aided by a lower effective tax rate.

• Orders received totaled Rs72,210m; the year-end order book exceeded Rs105,000m for execution in FY01 and beyond.

• The Board recommended a 30% dividend, including a 15% interim dividend already paid, versus 25% in FY99.

Financial highlights

• Turnover was Rs66,340m versus Rs67,947m in FY99; value added decreased 5% to Rs28,320m.

• Operating profit declined to Rs10,406m from Rs11,088m; profit after tax increased to Rs5,994m from Rs5,446m.

• Export turnover, including deemed exports, was Rs17,503m; export orders reached Rs7,030m versus Rs2,500m in FY99.

• Net worth rose 8.93% to Rs33,578m; borrowings increased to Rs2,407m from Rs1,701m, while year-end cash and bank balances fell to Rs3,606m from Rs5,374m.

Outlook and guidance

• GDP growth was projected at 7% for FY01 versus 6.4% in FY00; refinery, chemicals, cement, sugar, metals, power and infrastructure activity was expected to improve.

• Priorities included higher-rated coal-fired utility plants, upgraded designs, services and exports, railway and metro alliances, and expansion into IT and IT-enabled services.

• The order book of over Rs105,000m provided work for FY01 and subsequent periods.