Transformers and Rectifiers (India) (532928) Q4 09/10 earnings summary

Executive summary

• FY10 standalone turnover rose 21.18% YoY to Rs. 51,509.95 lacs; net profit after tax increased 12.22% to Rs. 4,950.88 lacs.

• Moraiya unit operated at full scale, producing 22 transformers totaling 2,160 MVA; its first two 400 kV-class transformers passed testing and were dispatched.

• Order book stood at Rs. 31,490 lacs as of 27 April 2010; 81% was power transformers, with 8% exports.

Financial highlights

• Standalone total income was Rs. 52,381.98 lacs, up 20.14% YoY; EBITDA was Rs. 8,373.70 lacs versus Rs. 7,507.72 lacs.

• Standalone PBT rose to Rs. 7,462.26 lacs from Rs. 6,564.63 lacs; net profit was Rs. 4,950.88 lacs versus Rs. 4,411.91 lacs.

• Consolidated total income increased 19.68% YoY to Rs. 52,879.05 lacs; consolidated PBT was Rs. 7,755.90 lacs and PAT Rs. 5,164.05 lacs.

• Export sales rose to Rs. 6,618.01 lacs from Rs. 1,798.45 lacs; proposed dividend increased to 50%, or Rs. 5 per share, from 40%.

Outlook and guidance

• Focus was set on 400 kV-class transformer demand; a memorandum with Power Grid Corporation of India covered development of a 1,200 kV-class transformer.

• The strategic agenda called for stabilizing high-MVA 400 kV production, maximizing 220 kV output and developing a 765 kV prototype by the end of the 11th Plan, in 2011/12.

• Order book at 27 April 2010 was Rs. 31,490 lacs: power transformers Rs. 25,416 lacs; distribution Rs. 701 lacs; furnace/rectifier Rs. 2,783 lacs; exports Rs. 2,590 lacs.