RattanIndia Enterprises (534597) Q4 16/17 earnings summary

Executive summary

• FY17 standalone loss after tax was ₹511.09 lakh, versus profit of ₹61.33 lakh in FY16; consolidated loss was ₹27,777.44 lakh, driven mainly by the associate’s share of loss.

• The principal investment was the 40.13% associate stake in RattanIndia Power Limited; the year’s focus included power-sector consultancy opportunities and progress at the associate’s thermal projects.

Financial highlights

• Standalone operating revenue was nil; other income was ₹21.97 lakh versus ₹680.28 lakh in FY16, while total expenses were ₹538.14 lakh versus ₹627.81 lakh.

• Standalone loss before tax was ₹516.17 lakh versus profit of ₹52.47 lakh; loss after tax was ₹511.09 lakh versus profit of ₹61.33 lakh.

• Consolidated loss before tax was ₹27,782.52 lakh, including a ₹27,266.35 lakh share of associate loss; consolidated loss after tax was ₹27,777.44 lakh versus ₹16,126.07 lakh in FY16.

• Cash and cash equivalents fell to ₹27.74 lakh at March 31, 2017, from ₹180.49 lakh a year earlier; net cash used in operating activities was ₹154.59 lakh.

• No dividend was recommended for FY17; losses prevented a transfer to general reserve and constrained CSR spending.

Outlook and guidance

• Consultancy opportunities were being pursued in power generation, transmission and distribution; strategy targeted client-base growth, wider geographic reach and expanded research, advisory and consulting services.

• RBI forecaster median estimates cited Indian GVA growth of 7.3% for FY18 versus 6.7% in FY17, with GST implementation, private investment and policy reforms among expected growth drivers.

• Forward-looking projections and expectations were cautioned as subject to actual results differing from stated or implied outcomes.