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Anirudh Bagai

Business Overview

Alstom Projects India Net Profit up marginally

Alstom Projects India has turned in a sales growth of 35% to Rs 538.17 crore for the quarter ended December 08. With the Operating Profit Margin tumbling down by 120 bps and other income dwindling down by 19%, PBIT growth of the company was restricted by 15% to Rs 60.07 crore. Going further, higher depreciation and the tax out go has controlled the Net profit growth to just 4% to Rs 31.38 crore.

Although the transport business leaped up its sales in this quarter, strong show of the company continues to be stimulated by power business. The segment profit of power sector has shown growth of 15% in the quarter ended December 08, while that of transport segment has reported losses.

Alstom Projects India, the subsidiary of Alstom SA France – the global leader in power generation and transport infrastructure offers a composite range of services related to power generation for utilities and industrial users, transportation systems covering traction, signaling and train control for the railways and energy management for variety of industries.

Performance for the quarter ended December 08

Sales for the quarter ended December 08 rose by 35% to Rs 538.17 crore, largely coming from power business. Segment revenue of power business was higher by 34% to Rs 526.59 crore (or 98% of total sales) and that of transport revenues have tripled to Rs 10.31 crore (or 2% of total sales). Operating margin for the quarter contracted by 120 basis points to 9.9% on year on year basis. The fall in OPM was attributed mainly to the rise in the other expenses, which (as % to sales) has increased by 120 basis points to 10.8%. The Material cost was down by 10 bps to 67.6% and the staff cost stood flat at 11.7%. Thus the operating profit was up by 21% to Rs 53.54 crore.

Segment margin of power business have eroded by 140 bps top 8.6% and that of transport have turned to red. The boost at operating level has come from power business with the segment profit having grown by 15% to Rs 45.36 crore (or 101% of PBIT) on the back of strong revenue growth. On the other hand the transport business recorded loss of Rs 0.59 crore as against profit of Rs 1.90 crore in the corresponding previous quarter. The other income for the quarter has declined by 19% to Rs 6.53 crore and thus PBIDT slide down to a growth of 15% to Rs 60.07 crore.

Interest cost for the quarter ended December 08, is Rs 1 lakh as against Rs 4 lakh in corresponding previous period. Depreciation was higher by 58% to Rs 9.53 crore. Thus PBT was up by 9% to Rs 50.53 crore. Taxation (including deferred tax & FBT) in absolute terms was higher at Rs 19.15 crore as compared to Rs 16.25 crore in the corresponding previous period. Tax incidence as % to PBT was up at 38% as against 35% in the corresponding previous period and thus restricted Net Profit to finally end at Rs 31.38 crore, marginally up by 4% on y-o-y basis.

Performance for nine months ended December 08

Sales for the nine month ended Dec '08 were higher by 43% to Rs 1491.56 crore. Operating profit was higher by 57% (to Rs 165.47 crore) as operating margin expands to 11.1% from 10.1% and steady growth in sales. Power segment has driven the growth with its segmental margins improving by 100 bps to 10.1%. Other income was marginally up by 5% to Rs 24.31 crore. The interest cost has halved to Rs 6 lakh and depreciation was up by 28% to Rs 21.64 crore. As result the PBT was higher by 51% to Rs 168.08 crore.

The taxation (including deferred tax and Fringe benefit tax) of Rs 59.38 crore (up 49%) left the net profit stand up by 51% to Rs 108.70 crore.

Other Information

Promoter share holding stands unchanged at 66.48% as end of Dec '08 – same compared to that at end of sequential previous quarter as well as corresponding previous quarter.

The stock was trading at Rs 248.55 on BSE as on 20 Jan 09

	Alstom Projects India: Results		

• EPS is on current equity capital of 67.02 crore Face value of Rs 10

1. EPS not calculated due to seasonality of business

Figures in Rs crore