GE Vernova T&D India (522275) Q4 2009 earnings summary

Executive summary

• Net sales rose 35% YoY to ₹35,658,766 thousand; order backlog increased 17% YoY to ₹4,772 crore, securing much of the 2010 sales volume.

• Utility investment and 765 kV transmission projects offset weakness in Industry, Infrastructure and export markets; eight new greenfield factories entered operation.

Financial highlights

• Net sales ₹35,658,766 thousand vs ₹26,412,143 thousand in 2008; operating profit before interest ₹3,576,638 thousand vs ₹4,049,462 thousand.

• Operating profit before interest margin was 10.0% vs 15.3%; net profit ₹1,920,026 thousand vs ₹2,263,231 thousand.

• Profit before tax was ₹2,930,254 thousand vs ₹3,470,262 thousand; restructuring and relocation costs were ₹83,286 thousand vs ₹396,167 thousand.

• Order intake reached ₹42,139 million in 2009 vs ₹40,129 million in 2008.

Outlook and guidance

• 2010 outlook was positive, supported by government transmission investment, National Grid development and expected demand for Smart Grid and intelligent-device solutions.

• Transmission demand was expected to remain positive in 2010; distribution-market recovery was expected in H2 2010.

• Price realization was expected to improve later in 2010, with higher T&D investment anticipated after July, subject to the investment environment.