Transformers and Rectifiers (India) (532928) Q4 14/15 earnings summary

Executive summary

• FY2014-15 standalone total revenue fell to ₹54,519.23 lakh from ₹72,232.20 lakh; net loss was ₹645.20 lakh versus prior-year profit of ₹480.51 lakh. Lower turnover was cited as the main cause.

• Consolidated total revenue was ₹55,641.69 lakh and net loss ₹803.17 lakh, compared with revenue of ₹73,573.60 lakh and profit of ₹518.79 lakh in FY2013-14.

Financial highlights

• Standalone revenue from operations was ₹54,168.54 lakh, down from ₹71,825.84 lakh; standalone PBT was a loss of ₹960.81 lakh versus profit of ₹766.52 lakh.

• Standalone raw-material costs were ₹46,188.08 lakh; finance costs rose to ₹2,767.30 lakh from ₹2,331.55 lakh, and depreciation to ₹1,200.31 lakh from ₹927.84 lakh.

• Consolidated revenue from operations was ₹55,365.88 lakh; consolidated PBT was a loss of ₹1,127.69 lakh versus profit of ₹932.23 lakh.

• Operating cash flow was ₹9,192.56 lakh standalone and ₹9,299.54 lakh consolidated, versus cash used in operations in FY2013-14 of ₹3,275.52 lakh and ₹3,196.42 lakh, respectively.

• No dividend was recommended for FY2014-15, versus ₹0.75 per share in FY2013-14.

Outlook and guidance

• Order book stood at ₹77,263 lakh as of 27 May 2015, led by power transformers at ₹65,527 lakh (84.81%); distribution transformers were ₹5,190 lakh and furnace/rectifier transformers ₹1,439 lakh.

• Management anticipated demand recovery in FY2015-16 and FY2016-17; at capacity utilization near 65%, margins were expected to remain under pressure.

• Government power-sector investment of nearly ₹15 trillion over the coming years and distribution-network programs were identified as opportunities for equipment suppliers.