GE Power India (532309) Q4 04/05 earnings summary

Executive summary

• FY05 orders received rose to Rs 8,810m from Rs 8,298m; order backlog was Rs 9,228m, equivalent to ~14 months of revenue.

• Revenue reached Rs 8,408m, while profit before tax excluding the extraordinary item was Rs 340m; prior-year figures are not directly comparable following the T&D business sale effective April 1, 2004.

• Reported profit after tax was Rs 479m, including Rs 128m gain on sale of the T&D business; the prior year included Rs 463m in extraordinary gains.

Financial highlights

• Net sales and services were Rs 8,285m vs Rs 5,899m; total income including other income was Rs 8,408m vs Rs 6,102m.

• Profit before tax excluding extraordinary items was Rs 340m vs Rs 301m; reported PBT was Rs 468m vs Rs 764m.

• Net income was Rs 479m vs Rs 772m; basic and diluted EPS before extraordinary items was Rs 5.39 vs Rs 5.14, and after extraordinary items was Rs 7.15 vs Rs 11.52.

• Cash from operating activities was Rs 527m vs cash used of Rs 124m; cash and bank balances increased to Rs 1,634m from Rs 1,266m.

Outlook and guidance

• A Rs 7,460m contract for the 8 x 250 MW Subansiri Lower Hydro Electric Project was won as the new financial year began; Power segment outlook was described as good.

• Electricity Act reforms, hydro development priorities and rail safety and metro investment were identified as opportunities for Power and Transport, with Transport prospects linked to Indian Railways requirements.

• Engineering recruitment and training were expanded to support local and global project ramp-up; headcount was 2,006 at March 31, 2005.