GE Vernova T&D India (522275) Q4 13/14 earnings summary

Executive summary

• FY14 sustained market leadership for a sixth consecutive year despite a contracting T&D market; stronger profitability reflected margin focus and selective order intake.

• Net sales were Rs 35,235.4 million; PAT was Rs 1,170.2 million, and the Board recommended a Rs 1.80 per share dividend.

Financial highlights

• Net sales rose from Rs 31,518.7 million in FY13 to Rs 35,235.4 million in FY14; operating profit before finance cost increased from Rs 1,815.7 million to Rs 2,530.0 million.

• PAT increased from Rs 841.1 million to Rs 1,170.2 million; FY14 exceptional items were nil, versus Rs 170.2 million profit on property sale in FY13.

• Revenue from projects and services was Rs 16,948.7 million, up from Rs 14,524.3 million; product sales were Rs 18,998.4 million, up from Rs 17,814.1 million.

• Net cash used in operating activities was Rs 1,411.8 million, versus Rs 4,123.7 million generated in FY13; trade receivables increased to Rs 22,960.8 million from Rs 17,146.4 million.

Outlook and guidance

• FY15 was expected to be flat, with the near-term business environment remaining challenging; management cited a good order book and anticipated easing of constraints.

• Transmission-sector prospects were viewed as positive but challenging, supported by Power Grid and state utility investment; margin pressure, project delays and cash realisation remained concerns.

• Planned grid upgrades, 765 kV and HVDC investments, Smart Grid deployments, renewable integration and a potential 88,000 MW generation addition in the 12th Plan presented growth opportunities.