GE Power India (532309) Q4 2000 earnings summary

Executive summary

• Turnaround in 2000: net profit after tax of Rs 113.1m versus a net loss of Rs 268.6m in the prior period; revenue and order backlog increased.

• Sales acceleration, cost controls, productivity and asset-management actions supported the return to profitability.

Financial highlights

• Revenue was Rs 2,844.4m for 2000, versus Rs 992.2m in the prior-period accounts; those comparatives are affected by the arrangement-related accounting period.

• Profit before tax was Rs 118.8m and net profit after tax was Rs 113.1m; prior-period loss after tax was Rs 268.6m.

• Sales and services were Rs 2,738.5m; other income was Rs 105.9m, including Rs 39.3m of interest income.

• Material cost was Rs 2,087.8m; personnel expenses were Rs 218.8m, other expenses Rs 355.6m, depreciation Rs 62.9m and interest Rs 0.6m.

• Management’s comparison cited revenue of Rs 2,844m versus Rs 1,189m and PBT of Rs 119m versus a Rs 334m loss; this comparison uses a different prior-year basis.

Outlook and guidance

• Management expected improved performance in 2001, supported by an opening order backlog of Rs 8,877m; 2001 order intake remained a concern for subsequent years.

• Prospects depend on power-sector reform and project realization; market opening is expected to take time, with restrictive practices and project delays still present.

• Plans included stronger overseas group links to balance resources against orders, greater focus on services and small plants, improved marketing and customer-value programs, and ERP implementation at all locations.