Techno Electric & Engineering Company (TECHNOE) Q4 03/04 earnings summary

Executive summary

• Revenue rose to ₹64.33 crore from ₹52.14 crore; profit after tax increased to ₹2.88 crore from ₹1.73 crore in FY04.

• Improved operating profits were attributed to value engineering and timely execution despite stiff competition.

Financial highlights

• Operating income was ₹64.33 crore; other income was ₹2.43 crore versus ₹1.73 crore in FY03.

• Profit before tax reached ₹3.81 crore, up from ₹2.20 crore; profit after tax was ₹2.88 crore versus ₹1.73 crore.

• Other income included ₹1.71 crore profit on sale of investments, a notable non-recurring contributor.

Outlook and guidance

• Management viewed prospects as bright, citing power-sector opportunities from the Electricity Act 2003 and the Government’s goal of reliable power for all by 2012.

• The 10th Plan projected over 41,100 MW of capacity additions and substantial expansion of 400 kV and 220 kV substations.

• Two 12 MW waste-heat-recovery captive power plants at Haldia and Rachagunneri were scheduled for commissioning by June 2005.