• Operational income excluding other operating income was up by 12% to Rs 854.56 crore with strong pickup in execution of orders on hand.
• Value of production for quarter was up by 24% to Rs 969.22 crore. Value of production is 13.2% higher than sales for the quarter. Comparatively value of production was lower by marginal 0.1% than sales in corresponding previous period. Sales lower than value of production for the quarter reflects inventory built-up which will get liquidated in coming months.
• Operating profit margin stood at negative 21% compared to positive 3% in corresponding previous period. Sharp jump in margin is largely due to higher material cost as well as sharp jump in other expenses. While staff cost as proportion of sales net of stocks was flat at 11.3%, the material cost was up by 490 bps to 76%. The other expenses jumped up by 1660 bps to 31.2%. While higher material cost seems largely due to project product mix, the jump in other expenses largely on account of one time provisions towards doubtful debtors and tax litigations.
• On the basis of internal evaluation including significant lapse of time and resultant increased in uncertainty in realization, the company has provided for an amount of Rs 69.3 crore towards doubt full debtors. The management has also reassessed the pending matters relating to taxes, and accordingly has created provision of Rs 38.4 crore and Rs 145 crore towards direct and in-direct taxes litigation/disputes respectively. Excluding this one off provisions for the quarter ended June 2016, the operating profit jumped up by 211% to Rs 72.77 crore as OPM expand at 8.5% compared to 3% in corresponding previous period.
• Other income was higher by 25% to Rs 31.29 crore. The interest cost was up by whopping 521% to Rs 72.61 crore. Jump in interest cost seems largely on account of one off item towards interest on tax litigations provided for. The depreciation was up by 2% to Rs 21.66 crore. Thus PBT was a loss of Rs 242.91 crore compared to a profit of Rs 15.54 crore in the corresponding previous period.
• EO income for the quarter as well as corresponding previous period was nil. The tax provision for the quarter was a write back of Rs 45.50 crore compared to a provision of Rs 5.39 crore in the corresponding previous period. Thus the loss at bottom-line moderated to Rs 197.41 crore compared to a profit of Rs 10.15 crore in the corresponding previous period.

Order book

Order intake for the quarter ended June 2016 was Rs 795.6 crore, a rise of 12.3%yoy. Order backlog of the company remain healthy at Rs 7866.8 crore. Order backlog as end of June 2016 stood lower compared to corresponding previous period order backlog of Rs 8002.3 crore.

Other developments

The name of the Company changed from ALSTOM T&D India Limited to GE T&D India Limited with effect from August 2, 2016.

Management Comment

Rathin Basu, Manging Director of GE T&D India said "The market conditions continue to be challenging. However, owing to healthy backlog and strong project execution capabilities, the company has performed well and maintained its leadership position in the T&D domain. We are hopeful that the market will pick up in the future on the back of strong reforms taken by the government."

The stock hovers around Rs 321.30.