gayatri projects limited - Edelweiss

Our Results of OperationsAs a result of the various factors discussed above that affect our income and expenditure on specific projects, our results ofoperations may vary from period to period depending on the nature of projects undertaken by us, their completion schedules,the nature of expenditure involved in a particular project and the specific terms of the contract, including payment terms. Inaddition, profitability margins generally tend to be higher in the irrigation projects in comparison to road projects and therefore,our intent is to target larger irrigation infrastructure projects with higher profitability margins, where there is likely to be lessercompetition.The following table sets forth certain information with respect to our results of operations for the periods indicated:(Rs. in Lakhs)PARTICULARS As at As at As at As at31.03.2006 31.03.2005 31.3.2004 31.3.2003INCOMEGross Contract Receipts 37,117.74 30,125.79 31,356.67 34,066.34Other Income 105.49 205.37 555.28 128.76Increase / (Decrease) in Work in Progress 417.54 25.36 (1,508.99) 380.16TOTAL INCOME: 37,640.77 30,356.52 30,402.96 34,575.26EXPENDITURESWork Expenditure 29,637.44 24,200.99 25,450.25 29,467.06Staff Cost 615.65 530.14 552.18 550.64Administration Expenses 733.45 725.26 642.04 564.17Financial charges 447.27 322.71 287.05 420.13TOTAL EXPENDITURE: 31,433.81 25,779.10 26,931.52 31,002.00Profit Before Interest, Depreciation and I.Tax 6,206.96 4,577.42 3,471.44 3,573.26Interest 2,407.69 2,267.04 1,699.84 1,672.40Depreciation 1,039.79 985.25 857.26 827.02Net Profit before tax and Extra- Ordinary items 2,759.48 1,325.13 914.34 1,073.84TaxationCurrent tax and FBT 535.66 402.48 251.56 218.88Deferred tax 415.85 (11.69) 81.42 131.67Net Profit before Extra-ordinary items (net of tax) 1,807.97 934.34 581.36 723.29Extra-ordinary items (net of tax) - - - -Net Profit after Extra-ordinary items 1,807.97 934.34 581.36 723.29Adjustment on account of prior period expenses # - (39.13) (57.89) -Adjusted Profit 1,807.97 895.21 523.47 723.29IncomeWe derive our income from (i) sales and contract revenue that consists of our operating income, (ii) other income that consistsof commission and income from royalty on activities related to construction, share of profit from Joint ventures andmiscellaneous income.Revenues from our engineering and construction contracts are recognized on the percentage of completion method, that isbased upon the proportion of the cost incurred as of a specific date to the total estimated contract cost, and revenues are notrecognized until there is reasonable progress on a contract. Accordingly, our revenues from a project are dependent on thecompletion schedule of the project. Our backlog comprises anticipated revenues from the uncompleted portion of existing139