GE Power India (532309) Q4 07/08 earnings summary

Executive summary

• FY08 revenue rose 23% to Rs 15,471m; profit after tax fell to Rs 733m from Rs 1,094m, with results affected by higher estimated completion costs on two projects.

• Order backlog reached Rs 28,941m, equivalent to about 26 months of revenue; order wins included Utran, Bujagali and Fujiarah.

Financial highlights

• Revenue Rs 15,471m vs Rs 12,545m; profit before tax Rs 1,188m vs Rs 1,370m; profit after tax Rs 733m vs Rs 1,094m.

• Reported PBT included a Rs 54m reversal of a prior impairment provision; before this exceptional item, PBT was Rs 1,134m.

• Cost-to-complete estimates for two projects were revised, resulting in an additional Rs 642m cost in FY08.

• Operating cash flow was Rs 2,340m; closing cash and bank balances were Rs 3,947m.

Outlook and guidance

• Management cited potential to capture power-sector capacity additions, including the government’s target of 16 GW annually in 2008–12 and 100 GW by 2017.

• Power outlook was positive amid planned capacity expansion; the business positioned itself to offer clean-power technologies and solutions.

• Transport plans focused on opportunities in railway expansion, metro systems, airport links, component manufacturing and signaling engineering services.