OREANDA-NEWS. February 13, 2012. Tata Power, India’s largest integrated private power utility, today, announced its consolidated and standalone financial results for the quarter ended December 31, 2011.

Key highlights Q3 FY12: Tata Power (standalone)

During the quarter, Tata Power’s results reflected a strong financial and operational performance. Revenues for the quarter were up by 35 per cent and stood at Rs2,161.05 crore as compared to Rs1,595.87 crore in Q3 FY11. PAT increased by 178 per cent to Rs425.88 crore as against Rs153.07 crore registered in the corresponding quarter last year and is not comparable due to AS11.

 In line with the notification dated December 29, 2011, issued by the Ministry of Corporate Affairs, the company has selected the option given in paragraph 46A of AS11, “The Effects of Changes in Foreign Exchange Rates”. Had the earlier practice been continued, the charge to the profit and loss account for the quarter ended December 31, 2011, would have been Rs168.77 crore.

PBT for the quarter was up by 239 per cent at Rs606.46 crore as compared to Rs179.02 crore in the same quarter last year. The other income stood at 410.48 crore, up by 382 per cent.

Key highlights Q3 FY12: Tata Power (consolidated)

On the consolidated basis, Tata Power’s revenues were up by 51 per cent and stood at Rs6,645.87 crore as compared to Rs4,412.91 crore in the corresponding period last year owing to the robust performance of both, power and coal businesses.

The company’s net profit was Rs265.67 crore against Rs441.37 crore in the corresponding quarter last year. Net profit is not comparable due to the provision made for deferred stripping costs and AS11 as explained above.

In view of the uncertainty involved in estimating the average stripping ratio for the life of the coal mines at PT Kaltim Prima Coal, (an Indonesian JV company), the entire deferred stripping costs accumulated in prior years was charged off to the profit and loss account, amounting to Rs648.42 crore during this quarter. Profit from operations before other income, interest, exceptional items and tax stood at Rs656.08 crore as compared to Rs805.63 crore. The company’s net profit after appropriations stood at Rs262.67 crore as against Rs442.37 crore reported in Q3 of FY11.

On consolidated segment-wise performance, revenues from the power business has increased by 50 per cent to Rs3,909.85 crore as compared to Rs2,611.26 crore registered in the corresponding quarter last year. The coal business contributed Rs2,700.71 crore to the revenues, an increase of 61 per cent as compared to Rs1,672.31 crore, during the corresponding quarter last year.

Profit before interest, tax and exceptional items excluding exceptional items for the power business segment stood at Rs481.92 crore, as compared to Rs401.82 crore in the corresponding period last year. PBIT for the coal business stood at Rs135.27 crore as compared to Rs432.57 crore, in the corresponding quarter last year.

Key highlights — nine months FY12: Tata Power (standalone)

During the period, Tata Power’s revenues were up 18 per cent and stood at Rs5,867.51 crore. PAT for the period was up by 46 per cent at Rs983.07 crore as compared to Rs673.78 crore for the same period last year. PBT for the quarter was up by 80 per cent at Rs1,535.97 crore as compared to Rs854.57 crore in the same quarter last year. During the quarter, other income stood at Rs990.34 crore as against Rs406.30 crore in the previous quarter, a rise of 144 per cent due to additional dividends from coal companies and forex gains.

Key highlights — nine months FY12: Tata Power (consolidated)

During the period ended December 31, 2011, Tata Power’s revenues stood at Rs18,699.02 crore up by 30 per cent as compared to Rs14,362.37 crore in the same period last year.

The net profit / (loss) after statutory appropriations stood at Rs(537.62) crore as compared to Rs1,426.58 crore in the corresponding period in the previous year. The same is not comparable with last year due to provisions made for deferred stripping costs of Rs334.73 crore and impairment in Coastal Gujarat Power of Rs985 crore as compared to the corresponding period last year.

 In segment-wise performance, revenues for the power business was up by 27 per cent at Rs11,564.58 crore and for the coal business were up by 46 per cent at Rs6,858.69 crore as compared to Rs9,108.76 crore and Rs4,686.29 crore respectively during the corresponding period last year. Profit before interest, tax and exceptional items for the power business was Rs1,571.07 crore as against Rs1,390.27 crore and PBIT for the coal business increased to Rs1,481.58 crore as compared to Rs1,218.84 crore in the corresponding period last year.

Commenting on the company’s performance, Anil Sardana, managing director, Tata Power, said:

“Our strong financial and operational performance for the quarter is driven by all our business divisions. All Tata Power operations and subsidiaries have done well this quarter as compared to the corresponding period last year.

Our key projects under implementation are progressing well. We have successfully synchronised India’s first 800MW sized super critical Unit 1 of our 4,000MW Mundra Ultra Mega Power Project, commissioned Unit 1 of 1,050MW Maithon Power Project and also synchronised our 25MW solar plant at Mithapur, one of the largest in the country. Our growth opportunities continue to be on course. We are also looking forward to a sustainable solution for Mundra UMPP.”

OPERATIONAL AND BUSINESS HIGHLIGHTS:

During the quarter under review, the company’s operations performed well. Sales volume for the quarter stood at 3,922MUs and overall generation was at 3,970MUs. Trombay Thermal Power Station generated 2,565MUs as compared to 2,374MUs in the corresponding quarter last year; hydro power stations generated 321MUs as compared to 266MUs in the corresponding quarter last year and Belgaum generated 62MUs as compared to 34MUs in the corresponding quarter last year. Jojobera Thermal Power Station generated 711MUs as compared to 769MUs in the corresponding quarter last year. Haldia reported rise in generation to 225MUs as compared to 212MUs in the corresponding quarter last year. Industrial Energy (IEL) reported increased generation of 384MUs as compared to 182MUs in the corresponding period last year. Wind farms generated 83MUs as compared to 58MUs in the corresponding quarter last year. The solar plants recorded generation of 1MU.

Mumbai Retail Business: As on December 31, 2011, the customer base in Mumbai stood at 267,918. Overall retail sale in the quarter was 4,460MUs. Two new customer relation centres (CRCs) were opened at Bandra and Lokhandwala. Upgradation of the payment kiosk in Borivali and Saki CRC completed allowing consumers to view / print bills and make online payment through credit card at the CRC itself.

Tata Power Delhi Distribution: The company’s distribution subsidiary and joint venture with the Delhi Government previously known as North Delhi Power got rechristened as Tata Power Delhi Distribution. During the quarter, it posted revenues of Rs1,061.44 crore as compared to Rs788.51 crore registered in the corresponding period of the previous year. The profit after tax was at Rs30.36 crore as against Rs34.78 crore in the corresponding quarter last year.

Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India, has earned revenues of Rs70.11 crore in Q3 FY12 as against Rs73.48 crore in the corresponding quarter year. The profit after tax stood at Rs28.08 crore as compared to Rs27.98 crore in the corresponding period last year.

Tata Power Trading Company (TPTCL): TPTCL traded a total of 1,339MUs during the quarter as compared to 730MUs in the corresponding period last year, thereby resulting in revenues of Rs489.83 crore as compared to Rs253.65 crore in the corresponding quarter last year. The profit after tax was at Rs3.98 crore up by 461 per cent as against Rs0.71 crore in the previous quarter last year.

GROWTH PLANS:

The progress on the company’s new projects is as follows:

4,000MW, Mundra Ultra Mega Power Project (UMPP): Mundra UMPP is progressing well and on schedule with engineering, procurement and construction activities in full swing. The first unit was ready for synchronisation since June 29, 2011, and awaiting transmission evacuation system which was made available by September 30, 2011 (instead of February 2011). Post availability of transmission capacity, Unit 1 has been synchronised with the grid and commissioning is targeted within the current quarter. Work on Units 2, 3, 4 and 5 is also on track and the units are progressing well.

1,050MW Maithon Project: Unit 1 has been commissioned and stabilised. In Unit 2, boiler steam blowing has been completed on November 20, 2011. Unit 2 is expected to be synchronised by end February 2012 and on full load by March 2012. In view of the delay in readiness of the railway line, logistics required for coal transportation are being ramped up and an action plan has been drawn for coal transportation round the clock by road, so that it can cater to the requirements of both the units.

114MW Dagachhu Project: In partnership with The Royal Government of Bhutan (RGoB), this project is progressing well. Major ordering for the project has been completed. All statutory clearances, and land, water and environment clearances have been received and PPA for the entire quantum of power has been signed for the project. Infrastructure activities such as approach road, bridges, construction power, etc have been completed. Given the geological conditions, the project is facing some delay but all efforts are being made to commission the unit by FY14.

236MW Dugar Hydro Power Project: Tata Power - SN Power Consortium JV won the bid for 236MW Dugar Hydro Power Project in Himachal Pradesh. The run-of-the-river “Dugar Hydro Electric Project” will primarily feed the northern grid.The project team has carried out route survey, geological mapping and contour mapping of the project site. Currently, the project is being optimised for 500MW.

Renewable projects:

Wind power: During the quarter, the company added 26MW of wind power capacity. The company’s installed wind generation capacity is 375MW spread across four states viz Maharashtra, Gujarat, Tamil Nadu and Karnataka.

Solar power: During the quarter, the company’s 25MW solar photovoltaic (PV) power project at Mithapur, Gujarat, under the state’s Solar Power Policy 2009, being developed through its subsidiary, Tata Power Renewable Energy, successfully tied up the entire debt requirement through a consortium of domestic lenders, viz State Bank of India and Export Import Bank of India, with SBI Capital Markets acting as the sole financial advisor and arranger. The signing of financing agreements was completed on December 2, 2011. The company has synchronised the plant on January 24, 2012, along with 66kV line and demonstration of complete readiness was done. Solar plant is now steadily generating supply.

Geothermal power: Tata Power led consortium along with Origin Energy, Australia and PT Supraco, Indonesia won the 240MW Sorik Marapi Project. The expected COD for the project is June 2015.

Decentralised distributed generation (DDG): The company has initiated the process of identifying opportunities and developing DG models. Distributed generation projects based on biomass as fuel are also being explored. Also, the cost reduction of gasifier-based projects are being explored to make the smaller size-based DG plants feasible based on the applicable feed-in-tariff.

Kalinganagar, Orissa 3X67.5MW (gas-based) + 3X150MW (coal+gas based): The project is being executed through Industrial Energy, a JV of the company with Tata Steel. Tata Steel has commenced its project (3MTPA steel plant) related works and has requested the company to initiate the enabling works related to the power plant. Tata Steel has obtained environment clearance (EC) for gas-based plant along with their steel plant. Water allocation has also been obtained. Process has been initiated for obtaining coal linkage, water allocation, EC, etc for coal-based plant.

Maithon expansion (2X660MW): The company has received DVC Board in-principle approval for Phase II expansion programme. Application for environmental clearance / public hearing has been submitted in September 2011.

1,600MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. Land acquisition is in progress. The company also signed an agreement with Maharashtra Government for the R&R package for the farmers in the Dehrand / Shahpur villages. Economic options for coal sourcing and logistics are under evaluation.

660MW Naraj Marthapur, Orissa: The major clearances for the project have been obtained. Land acquisition is in progress.

1,980MW Tiruldih Power Project, Jharkhand: The process of land acquisition for the project is in progress. In-principle clearance has been received from Railways for transportation of coal from Tubed Coal Block. Tubed Coal Block has been jointly allotted to Tata Power and Hindalco in Jharkhand.

International opportunities: The company has prioritised seven countries in three geographies for a purposeful international play. These included South Africa and other Sub-Saharan Africa countries, Indonesia, Vietnam, Turkey and the Middle-East. The company is in the process of deploying resources in these geographies to understand the market dynamics and scout for opportunities.

SUSTAINABILITY INITIATIVES:

Demand side management (DSM) programmes:

The company has launched several DSM programmes which are approved by the regulator. Now, the company has a portfolio of eight DSM programmes for different categories of consumers.

Tata Power Energy Club: Till Q3 FY12, the club has reached out to 257 schools nationwide, sensitised over 12 lakh citizens and saved more than 8.6 million units so far. It has received over 10,612 Energy Champions; 17,970 Energy Ambassadors and 837 self-sustaining mini Energy Clubs till this quarter.