GE Vernova T&D India (522275) Q4 2008 earnings summary

Executive summary

• FY08 order booking rose 37% and backlog grew 49%, strengthening leadership across at least 8 product lines despite difficult economic conditions.

• New manufacturing sites and expanded capabilities targeted rising demand for 765 kV products and future 1,200 kV systems.

Financial highlights

• Net sales were ₹26,412m vs ₹20,063m in FY07; operating profit before interest was ₹4,049m vs ₹3,498m.

• PAT was ₹2,263m vs ₹2,163m; PBT was ₹3,470m after ₹396m restructuring and relocation costs and ₹115m property-sale profit.

• Order intake reached ₹40,129m vs ₹29,343m in FY07.

Outlook and guidance

• Three greenfield sites were expected to begin production by April 2009, with capacity ramp-up phased; UHV 1,200 kV products were targeted for 2011–12.

• Utility conditions were viewed as stable, while FY09 overall T&D market growth was expected below FY08, putting pressure on prices.

• Multiple 765 kV substation awards were expected in 2009; new facilities could be upgraded for 1,200 kV demand expected in 2010–11.