• Operational income excluding other operating income was lower by 29% to Rs 971.53 crore. But the value of production for quarter was down by 17% to Rs 1022.65 crore. Sales lower than value of products reflects delay in delivery or inventory built up which will get liquidated in coming months. According to the company, sales for the quarter ended March 2016 was mainly impacted by realignment of revenue recognition milestones and phasing of project and export sales during the last quarter.

• Operating profit margin expanded by 120 bps to 9.3% as result of better product mix unlike increased contribution of project in the corresponding previous period. Material cost, which as a proportion to sales net of stocks was down by 260 bps to 68.6%. Though staff cost was up by 110 bps (to 8.6%) and that of other expenses stood higher by 160 bps (to 14%) that could not completely offset the gain in material cost. Thus the 18% fall in operating profit was due to lower sales.

• Other income was lower by 67% to Rs 0.04 crore. The interest cost was lower by 8% to Rs 18.90 crore. The depreciation was up by 1% to Rs 21.61 crore. Thus PBT was down by 27% to Rs 50.86 crore.

• EO income for the quarter as well as corresponding previous period was nil. The tax provision for the quarter was up by 37% to Rs 20.99 crore. Thus at PAT level the degrowth stood at 45% to Rs 29.87 crore.

Yearly performance

Sales were down by 7% to Rs 3449.99 crore. Lower sales together with 90 bps contraction in OPM, the operating profit was lower by 17% to Rs 268.90 crore. After accounting for lower other income, lower interest cost, higher depreciation and lower taxation, the net profit was eventually down by 36% to Rs 77.51 crore.

Order book

Order intake for the quarter and fiscal ended March 31, 2016 stood at Rs 1094.9 crore (up 34%yoy) and Rs 3367.7 crore respectively. Order backlog as end of March 31, 2016 stood at Rs 7969.7 crore down from Rs 8128.8 crore as end of corresponding previous period.

Management Comment

Rathin Basu, Manging Director of Alstom T&D India said "Despite difficult market and challenging operational environment, we have succeeded in delivering over 64 projects for our customers across all the segments. Through our enhanced portfolio, we are now addressing wider market segments. Thanks to our customer's confidence in our products and solutions, we continue to maintain the leadership position in the market."

Other developments

GE indirectly acquired Alstom T&D India as a part of its global acquisition of Energy business activities of ALSTOM on November 2, 2015. Until further update, Alstom T&D India will continue to operate under the name of Alstom T&D India.

The process of ‘open offer' made by GE Energy Europe BV (acquirer) along with General Electric Company and GE Albany Global Holdings BV (persons acting in concert) in terms of SEBI (substantial acquisitions of shares and takeovers) Regulations 2011 was completed in Feb 2016 and in terms of the same 43439 equity shares of the company were tendered by the shareholders of the company and 42570 equity shares were acquired by the acquirer. The shareholding in the company of the acquirer/promoter group, as a result increased to 75.02% from 75% as hitherto. In terms of regulation 7(4) of SEBI SAST regulation 2011 read with rule 19A of securities contract (regulations) rules 1957, the company promoters have one year time from completion of open offer to comply with minimum public shareholding requirement.

Subject to the approval of shareholders, to pay a dividend of Rs 1.80 (or 90%) per equity share of face value of Rs 2 for the year ended March 2016.

The stock hovers around Rs 345.