Techno Electric & Engineering Company (TECHNOE) Q4 97/98 earnings summary

Executive summary

• FY1997-98 billing rose to Rs 40.79 crore from Rs 31.19 crore; profit before tax reached Rs 1.13 crore and profit after tax Rs 67.38 lakh.

• Engineering work covered power substations, transmission systems, captive-power facilities and industrial piping; the Board recommended a 20% dividend, or Rs 2 per share.

Financial highlights

• Operating income was Rs 40.79 crore versus Rs 31.19 crore; total income was Rs 40.98 crore versus Rs 31.53 crore.

• Profit before tax was Rs 1.13 crore versus Rs 77.28 lakh; profit after tax was Rs 67.38 lakh versus Rs 49.53 lakh.

• Tax provision was Rs 45.17 lakh, including Rs 16.17 lakh for earlier years; proposed dividend was Rs 26.38 lakh.

• Net cash from operating activities was Rs 3.56 crore, compared with net cash used of Rs 3.41 crore in FY1996-97.

Outlook and guidance

• A further rights issue was planned at a 1:1 ratio, with a premium not exceeding Rs 30 per share, to support increased business activity.

• Captive-power enquiries were described as strong; several public- and private-sector tenders were expected to be finalized in the company’s favour.

• Ongoing projects at Bakreswar, BSES Kerala, PGCIL and NEEPCO were progressing satisfactorily; certain packages were expected to be commissioned during FY1998-99.