GE Vernova T&D India (522275) Q4 2007 earnings summary

Executive summary

• FY07 sales rose 25%, order book grew 25% and profitability increased 70%; net profit reached Rs 2,162,999 thousand.

• Growth spanned domestic and export orders, with the first 765 kV EHV substation commissioned in India at NTPC Sipat two months ahead of schedule.

Financial highlights

• Net sales were Rs 20,062,710 thousand vs Rs 16,058,136 thousand in FY06; operating profit before interest was Rs 3,521,235 thousand vs Rs 2,062,068 thousand.

• Profit before tax was Rs 3,431,785 thousand vs Rs 2,088,773 thousand; PAT was Rs 2,162,999 thousand vs Rs 1,370,178 thousand.

• Other income included Rs 97,467 thousand profit on sale of the Non T&D business; FY06 also included Rs 26,730 thousand separation costs vs Rs 4,505 thousand in FY07.

• Proposed dividend was 90% (Rs 9 per share), compared with 60% in FY06.

Outlook and guidance

• Industry outlook was positive; management emphasized profitable growth and continued capacity increases to address market demand.

• Three new greenfield facilities at Vadodara, Hosur and Padappai were expected to be ready for production by December 2008; GIS factory at Padappai was described as targeted for January 2009.

• Hiring target was around 1,000 people in 2008, following recruitment of about 600 in 2007, to support expansion and new sites.