Transformers and Rectifiers (India) (532928) Q4 06/07 earnings summary

Executive summary

• FY07 was described as a defining growth year: standalone turnover reached Rs.252.48 crore, up 66.31% YoY; PBT rose 116.02% to Rs.25.86 crore.

• Consolidated net profit after minority interest was Rs.17.63 crore, with EPS of Rs.25.30; capacity expansion and acquired businesses supported growth plans.

Financial highlights

• Standalone total income was Rs.252.48 crore vs Rs.151.82 crore; PAT was Rs.16.66 crore vs Rs.7.65 crore, and EPS was Rs.23.91 vs Rs.11.41.

• Consolidated total income was Rs.232.47 crore; PBT Rs.28.06 crore; net profit after minority interest Rs.17.63 crore; EPS Rs.25.30.

• Standalone gross profit before depreciation was Rs.27.45 crore vs Rs.12.81 crore; depreciation was Rs.1.59 crore and finance charges Rs.5.25 crore.

• An exceptional flood loss of Rs.1.82 crore was recorded after a Rs.2.50 crore insurance claim; damaged stock and process material had Rs.1.85 crore salvage value.

Outlook and guidance

• Order book stood at Rs.308 crore, with additional orders continuing to arrive; management cited strong prospects from infrastructure and power generation and distribution.

• Changodar expansion was targeted to start operations by June 2008, adding ~8,000 MVA annual capacity and lifting total installed capacity from 7,200 to 15,200 MVA.

• The new unit was designed for transformers up to 400 kV; construction contract was awarded to Shapoorji Pallonji & Co. Ltd.