GE Power India (532309) Q4 01/02 earnings summary

Executive summary

• Amalgamation became effective Nov. 1, 2002, retrospectively from Mar. 31, 2001; results include the transferred businesses and cover 15 months, limiting comparison with the prior 12-month period.

• Despite a weak economy and slow infrastructure growth, revenue rose with accelerated execution and dispatches on large projects; management cited cost control and productivity measures as supporting profitability.

Financial highlights

• Revenue was ₹11,545 million, PBT ₹789 million and PAT ₹630 million for the 15-month period; prior-year revenue was ₹2,844 million, PBT ₹119 million and PAT ₹113 million for 12 months, so figures are not directly comparable.

• Basic and diluted EPS was ₹10.18 versus ₹2.73 in the prior 12-month period; no dividend was recommended to conserve resources and strengthen the financial position.

• Consolidated revenue was ₹11,648 million, PBT ₹750 million and PAT ₹592 million; consolidated EPS was ₹9.54 for the 15-month period.

• Operating cash flow was ₹1,192 million and net cash flow ₹750 million; cash and cash equivalents ended at ₹1,145 million.

Outlook and guidance

• Power-segment revenue was expected to be lower as opening order backlog fell to ₹6,127 million; management expected results to remain under pressure.

• Future growth depended on infrastructure reforms and project closures; management saw potential in power solutions, rail modernization and T&D turnkey systems, while noting a time lag before projects materialize.

• T&D focused on cost rationalization to protect margins amid continued pricing pressure; the lightning-arrester subsidiary prioritized further cost savings and polymer products.