RattanIndia Enterprises (534597) Q4 12/13 earnings summary

Executive summary

• FY13 net loss narrowed to ₹21.58m from ₹34.72m; ₹24.69m of non-operating income was recorded, while advisory revenue was ₹2.12m in FY12 and nil in FY13.

• The principal investment was a 44.84% holding in Indiabulls Power after dilution; its two Maharashtra thermal projects had aggregate planned capacity of 5,400 MW.

Financial highlights

• FY13 loss before tax was ₹21.76m versus ₹36.14m in FY12; loss after tax was ₹21.58m versus ₹34.72m.

• Other income, entirely interest on intercorporate deposits, was ₹24.69m versus ₹3.04m; total expenses were ₹46.45m versus ₹41.31m.

• No dividend was recommended in view of the FY13 loss.

Outlook and guidance

• Targeted advisory opportunities across power generation, transmission and distribution; strategy includes expanding client reach, service scope, implementation support and skilled staff.

• Management estimated the five-year power consultancy market at ₹2,280 crore, based on 12th Plan conventional capacity additions of 76,000 MW and a 0.5% consultancy share assumption.

• Management expected announced fiscal and investment measures, alongside a possible global recovery, to support improvement in India’s 2013-14 outlook.