Techno Electric & Engineering Company (TECHNOE) Q4 05/06 earnings summary

Executive summary

• Revenue rose to ₹250.64 crore from ₹115.21 crore, while profit after tax increased to ₹12.22 crore from ₹4.90 crore; project execution and order wins supported growth.

• Timely procurement and stronger supplier relationships helped offset sharp equipment-price increases, including higher copper, zinc and aluminium prices.

Financial highlights

• Operating income was ₹250.64 crore versus ₹115.21 crore; other income rose to ₹4.11 crore from ₹3.45 crore.

• Profit before tax increased to ₹17.35 crore from ₹6.52 crore; profit after tax was ₹12.22 crore versus ₹4.90 crore.

• Profit before interest and depreciation was ₹18.03 crore, up from ₹6.95 crore; depreciation was ₹46.04 lakh and interest ₹21.80 lakh.

Outlook and guidance

• Power-sector policies and demand growth create opportunities in generation, transmission, distribution and rural electrification; the order book in transmission and distribution was expected to remain robust.

• Government planning called for over 100,000 MW of capacity additions by 2012, with seven 4,000 MW Ultra Mega Power Projects announced; large turnkey awards were viewed as a growth opportunity.

• Ongoing projects were progressing satisfactorily and expected to finish on schedule; additional tenders were expected to be finalized in the near term.