GE T&D India's loss narrows on lower input costs in March quarter

BENGALURU (Reuters) - GE T&D India Ltd, which manufactures power transmission and distribution equipment, reported a narrower fourth-quarter loss on Tuesday, as the company kept a tight lid on expenses.

Net loss narrowed to 153.5 million rupees ($1.9 million) for the quarter ended March 31 from 225.3 million rupees a year earlier.

The cost of raw materials fell 20%, resulting in a 16% drop in total expenses. Revenue from operations rose 6.2% to 7.03 billion rupees.

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WHY IT MATTERS

GE T&D posted losses consecutively since the September quarter of 2019 before swinging to a profit in the first quarter of last year. The company reported profits in the last three quarters as its order book slowly picked up after the COVID-19 pandemic.

 

However, with a limited order book on hand, execution continued to be a challenge for the company due to supply chain disruptions and commodity inflation, analysts at Antique Stock Broking said.

PEERS COMPARISON

Valuation Estimates (next 12 Analysts' sentiment

(next 12 months)

months)

RIC PE EV/EBIT Revenue Profit Mean # of Stock to price Div

DA growth growth rating* analysts target** yield

(%)

Cummins India 38.85 34.71 13.91 8.49 Hold 13 1.09 1.04

Ltd

Thermax 42.37 27.95 15.05 32.29 Hold 24 1.03 0.45

Limited

ABB India Ltd 77.08 58.74 21.11 34.07 Hold 23 1.08 0.14

KEC 22.85 11.27 15.68 171.03 Buy 21 1.05 0.72

International

Ltd

** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JAN-MARCH STOCK PERFORMANCE

-- All data from Refinitiv

-- $1 = 81.7800 Indian rupees

 

(Reporting by Kashish Tandon; editing by Eileen Soreng)