• Sales net of GST/excise were up by 4% to Rs 869.95 crore despite execution of some projects see deferrals on account of GST. Value of production for the quarter was down by 11% to Rs 853.84 crore and the value of production was 1.9% lower than sales for the quarter. On contrast the value of production of corresponding previous period was 15% higher than sales of corresponding previous period. This reflects the inventory built up in earlier period has got liquidated during the quarter.
• OPM for the quarter was 9.3% compared to 4.2% in corresponding previous period translating into an expansion of 510 bps. Material cost as proportion to sales net of stocks and excise duty was down by sharp 800 bps to 61.5%, but the staff cost and OE was up by 150 bps and 80 bps respectively to 11.6% and 17.5%. Higher OPM together with higher sales facilitated 131% jump in operating profit to Rs 80.48 crore.
• The other income was down by 19% to Rs 34.39 crore. Thus the PBIDT was up by 48% to Rs 114.87 crore. The interest cost was down by 6% to Rs 22.54 crore. The depreciation was up by 4% to Rs 22.81 crore. Thus spurred by lower interest cost and depreciation as proportion to OP, the PBT was up by 121% to Rs 69.52 crore.
• The taxation net of deferred tax was up at Rs 22 crore (against a write back of Rs 27.39 crore in corresponding previous period). And thus the PAT was down by 19% to Rs 47.52 crore. The PPT was nil for the quarter compared to a provision of Rs 38.30 crore in the corresponding previous period. Thus on deflated base, the PAT after PPT jumped up by 132% to Rs 47.52 crore.

Half yearly results

Sales were up by 23% to Rs 2079.23 crore and the operating profit was Rs 185.97 crore compared to a loss of Rs 145.02 crore in the corresponding previous period.

In corresponding previous half ended Sep 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. Eventually the PAT after PPT was Rs 109.19 crore compared to a loss of Rs 176.89 crore in the corresponding previous period.

Excluding the provision for bad debts and indirect tax litigations the operating profit margin of corresponding previous period would have been positive at 4.1% as against 8.9% in first half ended Sep 2017. Thus the operating profit for the period would have jumped by 168% to a profit of Rs 185.97 crore compared to a profit Rs 69.28 crore in the corresponding previous period.

Other developments

New order bookings for half year ended Sep 2017 were Rs 2311.4 crore, a growth of 13% compared to half year ended September 2016. Order on hand as end of Sep 2017 stand at Rs 8100 crore.

Management comment

Sunil Wadhwa, Managing Director of GE T&D India Limited, said, ‘This was a good quarter for us, making the first half of the year better than the same period last year in all aspects. We successfully commissioned pole 2 of Champa- Kurukshetra energy link this quarter, supplying an additional 1500 MW to Northern states from Central India. Making it first link in India transmitting 3000 MW of power through HVDC. Overall, the company is well positioned with an order backlog of over INR 81.3 Billion as of September 2017 end.