• Strong revenue growth seems the result of strong order burnout especially the power sector order backlog as well as large projects crossing revenue recognition thresholds. The company has started the current fiscal with a strong order backlog of Rs 5773 crore. Strong growth in topline seem have come from the major order currently under execution i.e. the 2000 MW Subansiri Lower Hydel power project in Assam/Arunachal. Upside in revenue largely came from power sector. While the segment revenue of power was up by 32% to Rs 469.71 crore the segment revenue of transport was lower by 39% to Rs 11.16 crore.

• Hit by heavy MTM loss, it was loss at operating profit level compared to a profit of Rs 23.50 crore in the corresponding previous period. The other income was lower by 21% to Rs 9.54 crore and the depreciation was higher by 3% to Rs 12.09 crore. Thus at PBT level it was a loss of Rs 5.69 crore compared to a profit of Rs 23.79 crore.

• At segment PBIT level it was a loss of Rs 5.89 crore and Rs 7.81 crore for both power and transport sector compared to a profit of Rs 13.67 and a loss of Rs 0.40 crore in the corresponding previous period.

• Finally after accounting for taxation (writeback of Rs 1.84 crore against provision of Rs 7.90 crore in Q3FY12) it was a loss of Rs 3.85 crore at net profit level compared to a profit of Rs 15.89 crore in the corresponding previous period.

Nine month performance

Sales for the period were higher by 30% to Rs 1345.98 crore. Operating profit was lower by 65% (to Rs 46.31 crore) as operating margin contract to 3.4% compared to 12.8% in the corresponding previous period. Sharp contraction in operating margin is largely on account of MTM loss to the tune of Rs 31.70 crore which was accounted as part of other expenses.

Other income was higher by 26% (to Rs 35.91 crore) and depreciation was up by 7% to Rs 36.29 crore. The interest cost was nil for the quarter as well as corresponding previous quarter. As result the PBT before EO was lower by 64% to Rs 45.93 crore.

Taxation (including deferred tax and Fringe benefit tax) was lower by 66% to Rs 14.90 crore. And thus the net profit was lower by 63% to Rs 31.03 crore.

Demerger of Boiler business to 100% subsidiary

The company decided to demerge its boiler business to ALSTIM Boilers India (ABIL), a wholly owned subsidiary of the company . The Board of Directors (BoD) of the company at their meeting on Oct 25, 2011, has approved the demerger with appointed date of April 1, 2011 subject to other statutory approvals. Given the approval of BoD for demerger of boiler business, the same is considered as 'Discontinuing Operations' with effect from the appointed date. The Statement of Assets and Liabilities as at Dec 31, 2011 includes an amount of Total Assets of Rs 560.78 crore and Tota1 Liabilities of Rs 523.31 crore relating to discontinuing operations.

The results for the quarter ended Dec 31, 2011 include revenue of Rs 140.04 crore, expenditure of Rs 146.98 crore, loss before tax of Rs 6.94 crore and tax write back of Rs 2.25 crore in respect of the discontinuing operations. Similarly the financials of 9MFY12 include revenue of Rs 378.53 crore, expenditure of Rs 383.76 crore, loss before tax of Rs 5.23 crore and tax writeback of of Rs 1.69 crore in respect of the discontinuing operations.

As discontinuing operations are effective from 1st April 2011, prior year/ period comparatives have not been given.

The stock hovers around Rs 358.