TD Power Systems Limited (533553) Q4 09/10 earnings summary

Executive summary

• FY10 turnover was Rs 45,455.82 lacs and net profit Rs 3,302.30 lacs; both declined amid recession-related slowdown, lower contract realizations and higher input and operating costs.

• Order book stood at Rs 50,469.14 lacs at 31 March 2010; directors expected improved operating performance in FY11, subject to unforeseen circumstances.

Financial highlights

• Net sales were Rs 4,545.58 million vs Rs 4,787.13 million in FY09; gross profit was Rs 577.90 million vs Rs 583.49 million.

• Profit before tax was Rs 521.82 million vs Rs 550.83 million; net profit was Rs 330.23 million vs Rs 369.83 million.

• Net profit declined 5.27% YoY and turnover declined 5.37% YoY, as reported in the directors’ review.

• Operating and other expenses increased to Rs 577.37 million from Rs 537.50 million; raw materials, stores and components consumed were Rs 1,812.88 million vs Rs 1,602.04 million.

Outlook and guidance

• Directors anticipated improved FY11 operating performance, citing the order book, improved business environment and delivery capability; outlook remained subject to unforeseen circumstances.

• Captive power demand resumed as steel, cement and sugar sectors improved; shortage of peak power and ongoing load shedding supported demand for generation equipment.