• Sales were up by 10% to Rs 895.29 crore with revenue from HVDC projects down by 56% to Rs 47.40 crore. Ex-HVDC revenue for the quarter was up by 20% to Rs 847.9 crore. Value of production for the quarter was down by 16% to Rs 891.46 crore.
• OPM for the quarter was 8.6% up from 1.5% in the corresponding previous period gained largely by sharp fall in material cost. Material cost as proportion to sales net of stocks was down by 1110 bps to 65.1%. The staff cost was down by marginal 10 bps to 9.4%. However the OE was up by 370 bps to 16.9%.
• The other income was down by 92% to Rs 5.61 crore. Thus the growth at PBIDT was moderated at 5% to Rs 82.61 crore. The interest cost was up by 60% to Rs 22.62 crore. The depreciation was down by 13% to Rs 19.83 crore. Thus hit by higher interest cost, the PBT was down by 4% to Rs 40.16 crore.
• The taxation net of deferred tax was flat (up0%) at 14.07% to Rs 14.07 crore and the tax rate was higher at 35.0% up from 33.7% in corresponding previous period. And thus the PAT was down by 6% to Rs 26.09 crore. The PPT for the quarter and corresponding previous period was nil. Thus the PAT after PPT was down by 6% to Rs 22.73 crore.
• Other comprehensive expense was Rs 3.36 crore compared to an income of Rs 6.05 crore. Thus the total comprehensive income was down by 33% to Rs 22.73 crore.

Yearly results

Sales were down by 3% to Rs 4218.82 crore and with OPM stand increase by 420 bps to 10.1%, the operating profit jumped by 66% to Rs 425.92 crore. Lower other income though dragged the PBIDT was down by 3% to Rs 484.22 crore. However the PBT was higher by 5% to Rs 334.57 crore facilitated by lower interest and depreciation cost. With taxation up by 11% to Rs 121.90 crore, the PAT was up by 2% to Rs 212.67 crore.

Other developments

Order bookings for FY19 were Rs 3740 crore compared to INR 3920 crore in year ended March 18. As end of March 2019 the order backlog was over Rs 6400 crore.

Revenue recognition - Effective 1 April 2018, the Company adopted Ind AS 115, "Revenue from Contracts with Customers" using the cumulative effect approach, as the transitional provision option available to the Company. The Company also reassessed the revenue recognition method in respect of measuring percentage of completion for applicable products/ services projects. The key changes in accounting policies included non-discounting of retention money as it is considered to ensure Company's obligation rather than provision of finance to the customer and change in method of measuring percentage of completion measured by segmented portions of the contract, i.e. Contract Milestones achieved to actual costs incurred. As a result, the cumulative effect of Rs 81.71 crore (net of tax impact Rs 42.41 crore) has been recognized as addition to retained earnings as at 1 April 2018. It is impracticable to determine the adjustments/ impact of the above changes on the comparatives and current period/ quarter results. Accordingly, the comparatives have not been retrospectively adjusted, i.e it is presented, as previously reported, under earlier revenue recognition standards.

The Board of Directors have recommended a dividend of Rs 1.80 (90%) per equity share of face value of Rs 2 each for the year ended March 31, 2019 subject to approval of shareholders.

Mangement comment

Sunil Wadhwa, Managing Director of GE T&D India Limited, said, "India's Power market as well as its operating environment continued to be challenging in the financial year 2018-19. But despite the headwinds, we were successful in achieving a balanced portfolio of orders, resulting in sustained market leadership and improved overall profitability. As of March 2019 end, we are well positioned with an order backlog of over INR 64 Billion. During the year we continued to demonstrate our operational excellence by commissioning many landmark projects that enabled integration of more than 16 GW power into the national grid. We commissioned pole 2 and pole 3 of Champa Kurukshetra link, which is now the first link in India transmitting 4500 MW of power. The 400 kV Amargarh Project in Kashmir for Sterlite Power was delivered ahead of its timeline, that too amidst harsh geographical and climatic conditions. We take pride in the fact that the project was dedicated to people of India by our Honourable Prime Minister Shree Narendra Modi. We believe that the Indian energy landscape is currently undergoing a significant positive transformation. As a leader in the innovation of modern grid solutions, we will continue to work closely with Government and our customers to implement solutions that will help India accelerate in its energy transition journey."