GE Power India (532309) Q4 11/12 earnings summary

Executive summary

• FY12 revenue Rs 24,121m vs Rs 18,036m; PAT Rs 1,677.5m vs Rs 1,689.0m, with EPS easing to Rs 24.95 from Rs 25.20.

• Orders received Rs 27,506m vs Rs 41,698m; year-end order backlog Rs 52,827m vs Rs 57,728m.

• Board recommended a Rs 10/share dividend, unchanged YoY.

Financial highlights

• PBT Rs 2,497.3m vs Rs 2,538.4m; finance cost Rs 6.5m and depreciation Rs 510.5m for FY12.

• Revenue from operations net of excise Rs 18,671.3m for continuing operations; discontinued operations contributed Rs 5,511.7m.

• Interest income Rs 428m vs Rs 387m despite lower cash; year-end net cash position Rs 2,181m.

• Operating cash flow was negative Rs 1,277.4m, reflecting working-capital outflows; cash and cash equivalents ended at Rs 2,181.3m.

Outlook and guidance

• Power equipment and services demand expected to grow under the 12th Five Year Plan; coal remains the main generation fuel, with hydro and renewables also expected to expand.

• Transport outlook remained positive long term, supported by metro and railway upgrades; execution and new awards depend on deferred or rescheduled projects proceeding.

• Bangalore Transport Information Systems engineering and R&D activity expected to expand; Coimbatore unit prepared to manufacture Chennai Metro traction components.