Techno Electric & Engineering Company (TECHNOE) Q4 02/03 earnings summary

Executive summary

• FY ended 31 Mar 2003 revenue fell to Rs 52.14 crore from Rs 75.46 crore, mainly due to delayed order finalisation by public-sector utilities; profit before tax and net profit also declined.

• Execution remained active: several substation, hydro, refinery and power-system projects were commissioned or progressed, while new major orders were secured.

Financial highlights

• Revenue Rs 52.14 crore vs Rs 75.46 crore YoY; other income rose to Rs 1.73 crore from Rs 1.49 crore.

• Profit before interest and depreciation Rs 2.86 crore vs Rs 3.65 crore; PBT Rs 2.20 crore vs Rs 3.14 crore.

• Net income Rs 1.73 crore vs Rs 2.02 crore; EPS Rs 6.58 vs Rs 7.65.

• Proposed dividend 10% (Re 1 per Rs 10 share), down from 15% in FY02.

Outlook and guidance

• Power remained a government priority, supported by the Electricity Bill 2003, APDRP, generation de-licensing and planned National Electricity Policy.

• Hydro development was prioritized, including a 50,000 MW addition programme over the next decade; ongoing tenders were expected to be decided shortly, with some anticipated in the business's favour.

• Management cited potential for compounding growth and initiatives to maintain a leading position in its operating areas.