Diamond Power Infrastructure (522163) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 covered 18 months; turnover was Rs. 5,144.40 lacs and net loss widened to Rs. 2,075.64 lacs from Rs. 450.25 lacs in the prior 12-month period.

• Severe losses, cash outflow from operations and debt-servicing pressure led to a CDR restructuring; sector reforms and large contracts offered potential support for demand.

Financial highlights

• Reported turnover was Rs. 5,144.40 lacs for 18 months, versus Rs. 8,386.58 lacs for the 12 months ended September 2003; periods are not directly comparable.

• Profit before interest and depreciation was Rs. 194.92 lacs; finance charges were Rs. 1,875.08 lacs and depreciation Rs. 394.08 lacs.

• Net loss was Rs. 2,075.64 lacs, versus Rs. 450.25 lacs in 2002-03; EPS was negative Rs. 15.34, versus negative Rs. 3.33.

• Net sales were Rs. 5,322.26 lacs; raw material consumed was Rs. 4,305.32 lacs for the 18-month period.

Outlook and guidance

• Transmission and distribution prospects were described as strong, supported by planned power capacity additions, grid investment and distribution reforms under the Electricity Act 2003 and APDRP.

• Demand was expected to benefit from contracts secured from BSES, L&T and Tata Projects, as well as electricity boards with letter-of-credit or Power Finance Corporation payment support.

• The outlook depended on improved utility finances, infrastructure spending and implementation of reforms; industry growth was expected to support electrical-product demand.