Techno Electric & Engineering Company (TECHNOE) Q4 98/99 earnings summary

Executive summary

• Operating income rose to ₹61.66 crore from ₹40.79 crore; profit after tax increased to ₹1.75 crore from ₹0.67 crore.

• A 1:1 rights issue of 1,319,200 shares at ₹40 per share, including premium, was completed; the proposed dividend remained 20%.

Financial highlights

• Total income was ₹61.98 crore versus ₹40.94 crore; profit before tax was ₹2.30 crore versus ₹1.13 crore.

• Profit after tax was ₹1.75 crore versus ₹0.67 crore; tax provision was ₹0.55 crore, including a ₹5.90 lakh excess provision for earlier years written back.

• Actual operating sales and other income of ₹61.98 crore exceeded the ₹52.50 crore projection; actual PAT of ₹1.75 crore exceeded the ₹1.30 crore projection.

• Subsidiary Techno International reported income of ₹2.53 crore and PAT of ₹2.06 lakh, versus ₹47.76 lakh and ₹58,522, respectively.

Outlook and guidance

• With a strong order book and anticipated improvement in the power sector, management expected growth to continue at the rate achieved in prior years.

• Prospects depended on stable government formation and renewed infrastructure funding; multilateral funding had yet to resume and political events had delayed power-sector initiatives.