GE Vernova T&D India (522275) Q4 11/12 earnings summary

Executive summary

• 15-month period ended Mar. 31, 2012 included the distribution-business demerger, effective Nov. 26, 2011; results are not directly comparable with the prior 12-month period.

• Maintained market leadership and achieved a record-high order backlog despite weak generation, industry and infrastructure markets.

• Post-demerger operations focus on electricity transmission products, projects and systems.

Financial highlights

• Net sales and services: Rs 41,291,890 thousand for 15 months, versus Rs 40,200,358 thousand for the prior 12 months; period and business scope differ.

• Operating profit before interest: Rs 2,882,776 thousand; 7.0% of net sales versus 8.6% in the prior period.

• Profit after tax: Rs 1,624,105 thousand versus Rs 1,867,413 thousand; basic and diluted EPS Rs 6.79 versus Rs 7.81.

• PBT of Rs 2,375,759 thousand included Rs 145,018 thousand profit on property sales; proposed dividend 90%, or Rs 1.80 per share.

Outlook and guidance

• Transmission outlook remained positive, with growth expected in 765 kV AC, HVDC, FACTS, digital substations and smart grids.

• Power generation, industry and infrastructure outlook was weak; market prices were not expected to rise in the prevailing T&D environment.

• Power Grid planned Rs 1,000,000 million of transmission investment in the 12th Plan; expected generation additions of 76,000–100,000 MW depended on easing project bottlenecks.