Transformers and Rectifiers (India) (532928) Q4 11/12 earnings summary

Executive summary

• FY12 standalone total revenue was ₹51,881.29 lakh, down 4.62% YoY; PAT fell to ₹918.30 lakh from ₹4,011.04 lakh, reflecting higher raw material and other costs.

• Order book stood at ₹60,700 lakh as of 30 Apr 2012; production reached 13,206 MVA, while exports were ₹4,735.68 lakh.

Financial highlights

• Standalone revenue from operations was ₹51,215.06 lakh versus ₹53,684.10 lakh; PBT was ₹1,318.28 lakh versus ₹5,882.95 lakh.

• Standalone PAT was ₹918.30 lakh versus ₹4,011.04 lakh; EPS was ₹7.11 versus ₹31.04.

• Consolidated total revenue was ₹52,378.23 lakh versus ₹54,966.35 lakh; consolidated PAT was ₹1,001.01 lakh versus ₹4,151.78 lakh.

• Consolidated EPS was ₹7.75 versus ₹32.13; EBITDA was ₹3,032.95 lakh versus ₹7,316.81 lakh.

Outlook and guidance

• FY12 order book of ₹60,700 lakh comprised power transformers ₹54,289 lakh (89%), distribution transformers ₹1,763 lakh (3%), furnace/rectifier transformers ₹2,189 lakh (4%) and exports ₹2,459 lakh (4%).

• Strategy: keep Changodar and Odhav units fully loaded, ramp up 400 kV and 765 kV transformer production at Moraiya, and tighten work-in-progress inventory and execution cycles.

• Management expected 765 kV orders to remain weakly remunerative for roughly two years; production and pricing decisions would depend on demand and realization trends.