Transformers and Rectifiers (India) (532928) Q4 08/09 earnings summary

Executive summary

• FY09 consolidated turnover rose 41% YoY to Rs. 43,049.88 lakh; net profit after minority interest rose 30% to Rs. 4,523.59 lakh.

• Standalone turnover increased 41% to Rs. 42,507.76 lakh and PAT rose 33% to Rs. 4,411.91 lakh.

• Proposed dividend doubled to 40%, or Rs. 4 per Rs. 10 equity share, subject to shareholder approval.

Financial highlights

• Consolidated net sales and service income were Rs. 43,049.88 lakh vs. Rs. 30,570.55 lakh; total income was Rs. 44,130.69 lakh vs. Rs. 31,161.32 lakh.

• Consolidated EBITDA was Rs. 7,861.11 lakh vs. Rs. 6,412.87 lakh; PBT was Rs. 6,832.84 lakh vs. Rs. 5,386.57 lakh.

• Consolidated net profit after minority interest was Rs. 4,523.59 lakh vs. Rs. 3,460.33 lakh; standalone PAT was Rs. 4,411.91 lakh vs. Rs. 3,310.26 lakh.

• Standalone net sales and service income reached Rs. 42,507.76 lakh vs. Rs. 30,186.97 lakh; total income was Rs. 43,547.81 lakh vs. Rs. 30,763.79 lakh.

Outlook and guidance

• Moraiya 220 kV-and-above plant was delayed by critical machinery deliveries; inauguration was expected in the quarter, with commercial production expected to begin thereafter.

• Moraiya operations were expected to start by end-Q1 FY10, with sales from Q2; the facility was projected to contribute 20% of total sales.

• 400 kV order execution was expected to begin in Q4 FY10; sales mix could tilt toward SEBs and utilities amid uncertainty in industry orders.

• Management anticipated FY10 margin pressure of 150–250 bps amid global recession and liquidity uncertainty.