• Sales were up by 40% to Rs 1263.39 crore on low base. Value of production for the quarter was up by 30% to Rs 1325.92 crore and the value of production was 4.9% higher than sales for the quarter. Value of production of corresponding previous period was 12.7% higher than sales of corresponding previous period. The inventory built up will get liquidated going forward.
• In corresponding previous quarter ended June 2016 the management had re-evaluated recoverability of certain customer debts and on the basis of internal evaluation and various factors, including significant lapse of time and resultant increase in uncertainty of realization, the company had provided for an amount of Rs 69.3 crore as bad debts. During the same period the management has also reassessed the pending matters relating to taxes and accordingly had created provision of Rs 145 crore towards indirect tax litigations/disputes and Rs 38.3 crore towards direct tax disputes. The provision towards direct tax was shown under PPT.
• Excluding the provision for bad debts and indirect tax litigations the operating profit margin of corresponding previous period would have been positive at 3.6% as against 8.3% in quarter ended June 2017. Thus the operating profit for the quarter would have jumped by 219% to a profit of Rs 105.49 crore compared to a profit Rs 33.02 crore in the corresponding previous period.
• OPM for the quarter was 8.3% compared to negative 20% in corresponding previous period. Material cost as proportion to sales net of stocks and excise duty was down by 490 bps to 71.2%, the staff cost and OE was down by 460 bps and 1760 bps respectively to 6.8% and 13.7%.
• The other income was up by 29% to Rs 42.18 crore. Thus the PBIDT was Rs 147.67 crore compared to a loss of Rs 148.64 crore in the corresponding previous period. The interest cost was down by 62% to Rs 27.79 crore. The depreciation was up by 4% to Rs 22.42 crore. Thus the PBT was a profit of Rs 97.46 crore compared to a loss of Rs 242.91 crore in the corresponding previous period.
• The taxation was up at Rs 35.79 crore (against a write back of Rs 83.80 crore in corresponding previous period) and thus the PAT was up at Rs 61.67 crore compared to a loss of Rs 159.11 crore in the corresponding previous period. The PPT was nil for the quarter compared to Rs 38.30 crore in the corresponding previous period and thus the PAT after PPT was a profit of Rs 61.67 crore compared to a loss of Rs 197.41 crore in the corresponding previous period.

Yearly results

Sales was up by 23% to Rs 4259.60 crore and the operating profit was lower by 56% (to Rs 39.58 crore) with OPM stand contracted by 170 bps to 0.9%. Hit further by lower other income, higher interest cost and depreciation the PBT (before EO) was a loss of Rs 73.27 crore compared to a profit of Rs 55.88 crore in the corresponding previous period. The tax was higher by 62% to Rs 71.56 crore and thus the PAT was a loss of Rs 86.66 crore compared to a profit of Rs 34.50 crore in the corresponding previous period.

Management comment

Sunil Wadhwa, Managing Director of GE T&D India Limited, said, ‘Company showed strong financial performance, both in terms of profitable sales and execution in this quarter, which has also been one of the best so far in terms of winning new orders. The company is well positioned with an order backlog of over INR 84.2 Billion as of June 2017 end.'