Alstom T&D India slides by 6 per cent after weak results of Q4FY16

Alstom T&D India's share price declined nearly 6 per cent after the company reported de-growth of 45 per cent in net profit quoting Rs 29.87 crore in March quarter 2016 as against Rs 54.03 crore for the corresponding quarter of last year. However, the company had reported net loss of Rs 18.21 crore in the preceding quarter.

Total operating income has grown by 29.46 per cent at Rs 977.99 crore for the quarter ended March 31, 2016 as against Rs 755.29 crore for the quarter ended March 31, 2015; but was down 28.54 per cent at 1,368.23 crore in the preceding quarter.

The company’s EBITDA has declined by 17.85 per cent of Rs 91.33 crore for the quarter along with EBITDA margin expanding by 121 bps for the current quarter at 9.34 per cent.

For the year ended March 31, 2016, the company’s standalone net profit has declined by 35.71 per cent at Rs 77.51 crore as against Rs 120.57 crore in FY15. Its revenue has reported a de-growth of 7.29 per cent at Rs 3,449.90 crore. EBITDA has declined by 16.49 per cent at Rs 268.90 crore along with EBITDA margin contracting by 51 bps at 8.14 per cent.

The company provides power generation, power transmission and rail infrastructure technologies. The Company is engaged in the business pertaning to products, projects and systems for electricity transmission and related activities. It has a predominant presence in all stages of the power supply chain.

Alstom T&D India's board of directors have recommended a dividend of Rs 1.80 per share for FY16 same as in the previous year despite of de-growth in profit.

In our Issue No. 7 dated Mar 07-20, 2016, we have recommended to avoid this when it was trading at Rs 358 in our special report. Later it spiked to Rs 450. Now again it has corrected to Rs 354.20 per share due to consistently posting poor results. Eventually our advice is to avoid this stock and bet on good fundamental stocks.