John Cockerill India (500147) Q4 19/20 earnings summary

Executive summary

• FY20 results weakened amid a subdued steel market, India’s economic slowdown and COVID-19 disruption; revenue from operations fell 25.24% YoY and PBT fell 38.52% YoY.

• Orders received were ~₹69 crore and the closing order backlog was ₹538 crore at March 31, 2020; the business remained debt-free.

Financial highlights

• Revenue from operations was ₹37,100.35 lakh vs ₹49,623.90 lakh in FY19; total income was ₹38,675.50 lakh vs ₹51,754.90 lakh.

• EBITDA was ₹3,766.89 lakh vs ₹5,290.52 lakh; PBT was ₹2,891.55 lakh vs ₹4,703.39 lakh.

• PAT was ₹2,374.50 lakh vs ₹3,509.74 lakh; EPS was ₹48.09 vs ₹71.08.

• Revenue from customer contracts was ₹34,873.58 lakh vs ₹48,730.84 lakh; export markets contributed 63.86% and India 36.14%.

Outlook and guidance

• Active proposals covered ~₹700 crore of potential orders, including ~₹70 crore at an advanced stage; additional backup opportunities totaled ₹1,000 crore.

• Management expected project execution to continue on revised customer-agreed timelines; >70% of design and project-management employees worked from home during lockdown.

• Management expected revenue and profits to increase with improved margins, barring unforeseen circumstances; recovery timing remained uncertain.