Transformers and Rectifiers (India) (532928) Q4 10/11 earnings summary

Executive summary

• FY11 standalone turnover rose 3.59% YoY to Rs 53,356.84 lakh, while PAT fell 18.98% to Rs 4,011.04 lakh amid higher raw-material and other costs.

• Production reached 13,527 MVA; the order book stood at Rs 32,860 lakh as of 22 April 2011, with power transformers accounting for 65.70%.

• Consolidated total income increased 4.59% to Rs 55,274.61 lakh, while consolidated PAT declined to Rs 4,151.78 lakh from Rs 5,164.05 lakh.

Financial highlights

• Standalone total income was Rs 54,702.28 lakh vs Rs 52,320.55 lakh; EBITDA was Rs 6,874.29 lakh vs Rs 8,373.70 lakh, and PBT was Rs 5,882.95 lakh vs Rs 7,462.26 lakh.

• Standalone PAT was Rs 4,011.04 lakh vs Rs 4,950.88 lakh; basic and diluted EPS was Rs 31.04 vs Rs 38.31.

• Consolidated EBITDA was Rs 7,287.22 lakh vs Rs 8,741.86 lakh; PBT was Rs 6,203.26 lakh vs Rs 7,755.90 lakh, and EPS was Rs 32.13 vs Rs 39.96.

• Export sales were Rs 6,392.67 lakh vs Rs 6,618.01 lakh; export revenue was 13.76% of the order book.

Outlook and guidance

• Tied up with ZTR, Ukraine, to manufacture and supply 765 kV-class transformers to PGCIL; an order was expected, with production planned at Moraiya.

• Signed an MOU with PGCIL to develop a 1,200 kV-class transformer.

• Planned to optimize Moraiya utilization by producing more 400/765 kV transformers, using 220 kV units as balancing load.

• Management cited an expected 35% of power-transformer MVA demand in the 400/765 kV segment, with 765 kV demand expected to rise from mid-12th Plan.