Transformers and Rectifiers (India) (532928) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated net sales including service income reached Rs. 30,519.24 lakh; PAT after minority interest rose to Rs. 3,478.23 lakh from Rs. 1,762.54 lakh.

• Standalone net sales including service income increased 38% YoY to Rs. 30,135.66 lakh, while PAT grew 99% to Rs. 3,310.26 lakh.

Financial highlights

• Standalone total income increased 40% YoY to Rs. 30,712.48 lakh; PBT was Rs. 5,134.43 lakh versus Rs. 2,586.14 lakh.

• Consolidated total income rose 40% YoY to Rs. 31,110.01 lakh; PBT reached Rs. 5,386.57 lakh versus Rs. 2,805.86 lakh.

• Standalone EBITDA was Rs. 6,096.51 lakh; consolidated EBITDA was Rs. 6,412.87 lakh.

• Proposed FY08 dividend was 20%, or Rs. 2.00 per Rs. 10 equity share, subject to shareholder approval; prior-year dividend was 18%.

Outlook and guidance

• Moraiya 220 kV-class-and-above facility was expected to begin commercial production in Q2 FY09; civil work was nearing completion and major machinery deliveries had started.

• Directors expressed confidence in steady, sustained growth, supported by capacity expansion, higher-voltage products, exports and renovation and modernisation demand.

• Market competition was expected to intensify as manufacturers expanded capacity, with margins expected to face some pressure.