OREANDA-NEWS. November 13, 2012. Tata Power group’s Q2 consolidated revenue crosses Rs7,500 crore mark and stood at Rs7,649.49 crore, up by 22 percent

Standalone revenue stood at Rs2,409.01 crore, up 29 percent, due to strong operational performance

H1 consolidated revenues were up 23 percent at Rs14,847.06 crore, PAT at Rs62.13 crore

H1 standalone revenues up 24 percent at Rs4,599.03, PAT up 2 percent at Rs608.28 crore

H1 FY13 operating profit at Rs903.85 crore, up by 5 percent

Q2 FY13 operating profit was significantly up by 26 percent and stood at Rs527.90 crore

Q2 FY13 consolidated PAT stood at Rs83.80 crore as compared to loss of Rs1,187.32 crore in Q2FY12. Q2 FY13 standalone PAT for the quarter stood at Rs295.98 crore as compared to Rs313.04 crore in Q2 FY12

Editorial synopsis

Key financial highlights: Q2 FY13 vs Q2 FY12

Consolidated revenue up 22 percent at Rs7,649.49 crore as compared to Rs6,248.33 crore

Consolidated PAT stood at Rs83.80 crore as compared to loss of Rs1,187.32 crore

Standalone revenue up 29 percent at Rs2,409.01 crore as compared to Rs1,864.39 crore

Standalone PAT stood at Rs295.98 crore as compared to Rs313.04 crore

Key financial highlights: H1 FY13 vs H1 FY12

Consolidated revenue up 23 percent at Rs14,847.06 crore as compared to Rs12,053.15 crore

Consolidated PAT stood at Rs62.13 crore as compared to loss of Rs756.88 crore

Standalone revenue up 24 percent at Rs4,599.03 crore as compared to Rs3,706.46 crore

Standalone PAT stood at Rs608.28 crore as compared to Rs594.60 crore

Key business and growth highlights

Awarded Letter of Intent (LoI) for the electricity distribution franchise for Jamshedpur circle

1,050 MW Maithon Mega Power Project commissions its second unit of 525 MW

Generation capacity touches 6,900 MW with commissioning of Unit 3 of Mundra UMPP

Launches and successfully completes debenture issue of Rs1,500 crore

Mumbai: Tata Power, India's largest integrated power company, today announced its results for the quarter ended September 30, 2012.

Performance highlights Q2 FY13: consolidated

On a consolidated basis, Tata Power's Q2 FY13 revenues increased 22 percent to Rs7,649.49 crore, as compared to Rs6,248.33 crore in the corresponding quarter last year, mainly due to commissioning of new units and higher fuel cost.

PAT stood at Rs83.80 crore as compared to Rs145.93 crore in Q1 FY13 and loss of Rs1,187.32 crore in Q2 FY12. The current quarter has an impairment charge of Rs250 crore in relation to CGPL, mainly on account of a change in the long term foreign currency outlook for the INR/USD from 45 to 50. Last year, Q2 FY12 had an impairment charge of Rs823 crore based on assessment of fuel and other operating costs. Further, corresponding quarter last year also had a forex loss of Rs638.96 crore recorded by CGPL.

On consolidated segment-wise performance for the quarter, revenues from power business has increased by 40 percent to Rs5,488.54 crore as compared to Rs3,934.43 crore in the corresponding quarter last year. Revenue from coal business was at Rs2,056.77 crore as compared to Rs2167.29 crore in the corresponding period last year.

PBIT from power business was at Rs717.39 crore as against Rs462.15 crore in the previous quarter last year. PBIT from coal business stood at Rs290.18 crore as compared to Rs596.24 crore reported in the corresponding quarter last year and Rs257.61 crore in Q1 FY13. While coal price realisation of Indonesian coal companies was significantly lower compared to last year resulting in lower PBIT, the PBIT in Q2 FY13 is comparable to Q1 FY13 with marginal decline in coal prices.

Performance highlights Q2 FY13: standalone

During the quarter, company's standalone results reflected a robust operational performance.

Revenue grew to Rs2,409.01 crore, up 29 percent as against Rs1,864.39 crore in Q2 FY12 mainly due to higher fuel cost.

PAT stood at Rs295.98 crore as compared to Rs313.04 crore in the corresponding period last year. Other income stood at Rs205.54 crore as compared to Rs385.09 crore mainly due to lower dividend from coal SPVs. The higher interest charges are on account of hybrid bond issuance and capitalisation of assets, including wind assets.

Performance highlights H1 FY13: consolidated

On a consolidated basis, Tata Power's H1 FY13 revenues increased 23 percent to Rs14,847.06 crore as compared to Rs12,053.15 crore in corresponding period last year.

PAT stood at Rs62.13 crore as compared to loss of Rs756.88 crore in the same period last year. This is mainly due to impairment charge of Rs823 crore in the previous year. Further, forex loss of Rs638.96 crore was recorded by CGPL in the corresponding period last year.

On consolidated segment-wise performance, revenues from power business was up 35 percent to Rs 10,312.55 crore as compared to Rs7,654.73 crore in corresponding period last year. Coal business reported 4 percent increase in revenues at Rs4,321.81 crore as compared to Rs4,157.98 crore in the corresponding period last year. PBIT from power business was at Rs1,295.63 crore as against Rs1,089.15 crore and PBIT from coal business stood at Rs547.79 crore as compared to Rs1,346.31 crore reported in the corresponding period last year.

Performance highlights H1 FY13: standalone

Standalone revenue grew to Rs4,599.03 crore, up 24 percent as against Rs3,706.46 crore in Q2 FY12.

PAT was at Rs608.28 crore as compared to Rs594.60 crore in the corresponding period last year due to strong operational performance.

Commenting on the company’s performance, Anil Sardana, managing director, Tata Power, said, “During the last few quarters, the company recorded significant increase in its revenues driven by all round performance of its business divisions. All our projects and subsidiaries have performed well. Though coal companies posted lower PBIT compared to previous year due to falling coal prices, the same was comparable to Q1FY13. Our key projects are progressing well and we have synchronised and declared commercial operation of Unit 3 of Mundra UMPP. This is a significant milestone as gross generation capacity has touched 6,900MW, reinforcing our position as the largest integrated power company in India. We’re also happy to have been awarded the Letter of Intent for the electricity distribution franchise for Jamshedpur circle, after our success in Mumbai and Delhi.”

Operational highlights

During the quarter under review, the company continued its robust operations and performed well. Sales volume for the quarter stood at 4,235 MUs as compared to 3,793 MUs in Q2 FY12. The overall generation was 4,272 MUs, up 13 percent, as compared to 3,772 MUs reported in corresponding quarter last year. Trombay Thermal Power Station generated 2,470 MUs as compared to 2,120 MUs in the corresponding quarter last year. Hydro power stations generated 336 MUs as compared to 495 MUs. Jojobera Thermal Power Station generated 840 MUs as compared to 735 MUs and Haldia reported generation of 214 MUs as compared to 197 MUs in the corresponding quarter last year. Industrial Energy reported generation of 435 MUs as compared to 375 MUs. Wind farms generated 364 MUs as compared to 220 MUs in the corresponding quarter last year. Solar plant recorded generation of 1 MU as compared to 1 MU in Q2 FY12.

Business highlights: key subsidiaries

Coastal Gujarat Power Limited (CGPL): CGPL announced synchronisation of its 800 MW sized Unit 3 of Mundra UMPP and COD on October 27, 2012. Unit 1 and 2 are already in operation. Work on Units 4 and 5 of the project is on track and progressing well. Mundra UMPP has achieved 96.73 percent progress. The company posted revenues of Rs362.86 crore in Q2 FY13 and PAT stood at Rs461.16 crore. Central Electricity Regulation Commission held its hearing on September 27, 2012 and the petition has been admitted. Formal hearings will commence soon after respondents (procurers) submit their responses to the petition. CGPL looks forward to a positive and an early resolution considering that it has built a national resource and one of the most competitive and state-of-the-art power generation plant.

Maithon Power (MPL): The 74:26 joint venture between Tata Power and Damodar Valley Corporation commissioned second unit of 525 MW in Dhanbad, Jharkhand. Revenues for Q2 FY13 stood at Rs435.41 crore and PAT stood at Rs41.41 crore due to high depreciation and interest charges arising out of commissioning of both units. There were issues with regards to acquisition of 65 acres of private land, which have been resolved in August 2012. The land acquisition is under progress and is expected to be completed by March 2013. The licensing of 35 acres of railways land is also in advanced stages and expected to be completed by March 2013. The actual construction work of railway infrastructure will be completed by December 2013. Fuel supply agreement with CCL for 1.975 MTPA of coal was signed in September 2012. The supply of coal from CCL is expected to commence by November 2012.

Industrial Energy (IEL): The company reported revenues of Rs131.43 crore, increase of 17 percent and PAT of Rs21.27 crore, up 16 percent over last year.

Tata Power Renewable Energy (TPREL): Q2 FY13 revenues stood at Rs12.51 crore and PAT was at Rs1.12 crore.

Tata Power Delhi Distribution: The company's distribution subsidiary and joint venture with Delhi government posted revenues of Rs1,537.49 crore as compared to Rs1,767.39 crore in corresponding quarter last year. PAT stood at Rs41.42 crore as compared to Rs86.17 crore in Q2 FY12.

Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India reported revenues of Rs61.81 crore in Q2 FY13 as compared to Rs72.27 crore in Q2 FY12. PAT stood at Rs28.09 crore, as compared Rs29.54 in Q2 FY12.

Tata Power Trading Company (TPTCL): TPTCL traded a total of 2,304 MUs as compared to 1,570 MUs in the corresponding period last year, resulting in revenues of Rs892.95 crore as compared to Rs394.17 in Q2 FY12. PAT stood at Rs5.96 crore as compared to Rs3.42 crore in Q2FY12.

Growth plans

Distribution franchise of Jamshedpur circle: The company was awarded the LoI for the distribution franchise of Jamshedpur circle by the Jharkhand State Electricity Board. The distribution franchise awarded to Tata Power will be for a period of 15 years. Tata Power will be responsible for operating and maintaining the distribution network in the Jamshedpur circle, which includes Jamshedpur, Tata Steel City, Adityapur and Ghatsila divisions. Tata Power will also be managing the billing and collections.

Kalinganagar, Orissa 3x67.5 MW (gas based) + 3x150 MW (coal + gas based): The project is being executed through IEL, a joint venture of the company with Tata Steel. Tata Steel has obtained environment clearance for gas based plant along with their steel plant. Civil construction work is progressing well and order for major equipments has been placed.

236 MW Dugar hydro power project: The Tata Power and SN Power Consortium joint venture won the bid for 236 MW Dugar hydro power project in Himachal Pradesh. Pre-feasibility studies are under progress by the joint project team. The project will primarily feed the northern grid.

1,600 MW coastal Maharashtra project: All statutory clearances required to start the project implementation are in place. The Rehabilitation and Resettlement (R&R) Authority of the Government of Maharashtra has approved the R&R proposal made by Tata Power. Land acquisition is in progress. Economic options for coal sourcing and logistics are under evaluation.

1,980 MW 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. The company has successfully extended MoU with the Government of Jharkhand which is valid for three years.

660 MW Naraj Marthapur project, Orissa: The major clearances for the project have been obtained. The environment clearance has been granted by MoEF, subject to clearance from National Board of Wildlife for which the process is on. Proposal for using clean technology is also under discussion for this project.

International projects

Cennergi: Department of Energy, Government of South Africa, announced Cennergi (Tata Power’s South African joint venture with Exxaro) as preferred bidder for two wind projects of 234 MW - Amakhala 139 MW and Tsitsikamma 95 MW projects.

Tata Power has signed a long term coal supply agreement with PT Antang Gunung Meratus, Indonesia, a 100 percent subsidiary of the Indonesian company PT Baramulti Sukses Sarana. In order to secure the coal supplies, the company, through its 100 percent subsidiary, Khopoli Investments, has also entered into an agreement which gives Khopoli an option, subject to necessary approvals, to take up to a 26 percent stake in BSSR.

114 MW Dagachhu project: is being developed in partnership with The Royal Government of Bhutan. Major ordering for the project has been completed and PPA for the entire quantum of power has been signed for the project. The excavation of emergency tunnel and tail race tunnel completed. Invert lining of connection tunnel is in progress. For head race tunnel, more than 60 percent of tunnel excavation has been completed. More than 99 percent of engineering and 95 percent of manufacturing activities are complete. Currently, assembly of generator transformers and erection of EOT crane in power house is in progress. All efforts are being made to commission the unit by 2013.

Geothermal power: Tata Power, along with consortium partners Origin Energy and PT Supraco, won 240 MW Sorik Marapi Project in Indonesia. The environmental permits were received in May 2012. Application of Forestry Permit is in the final stage of approval. The vendor for Engineering Design and Quantity Survey contract has been mobilised at site and work has started.

Awards and recognitions

Tata Power Club Enerji has been recognised at the 2012 International Business Awards with the Gold Stevie Award for the best Marketing Campaign of the Year 2012 – Energy category.

Asia Pacific Enterprise Leadership Awards (APELA), Singapore conferred APELA 2012 - Eco Advocate Award to Club Enerji.

Tata Power was conferred with conferred with IPPAI (Independent Power Producers Association of India) Award in the Best Wind Power Producer category.

Unit 6 at Trombay Thermal Power Station was awarded the Energy Efficient Unit at the 13th National Awards for Energy Management.