OREANDA-NEWS. Tata Power, India’s largest integrated power company, announced its results for the financial year ended March 31, 2013.

Consolidated performance highlights

On a consolidated basis, Tata Power group’s FY13 revenue was up by 27 percent to Rs33,025.43 crore, as compared to Rs26,001.40 crore last year, mainly on account of additional revenue generated from Coastal Gujarat Power (CGPL) Mundra and Maithon, higher revenue from Tata Power Delhi Distribution (TPDDL) on account of increase in power purchase cost and higher volume traded by Tata Power Trading. Operating profit was up 15 percent at Rs4,580.65 crore as compared to Rs3,990.63 crore in the corresponding period last year. PAT stood at Rs85.43 crore, as against Rs1087.68 crore reported in FY12. This is largely due to better operating performance, lesser impairment provision on account of CGPL Mundra of Rs850 crore this year and writing down of another Rs100 crore of investments. Last year’s PAT included provisions of Rs1,800 crore of impairment for Mundra project and Rs659.44 crore of deferred stripping costs, a total provision of Rs2,460 crore.

On a consolidated financial year segment-wise performance, net revenue from power business was up by 44 percent at Rs23,216.08 crore as compared to Rs16,169.59 crore and from coal business was at Rs9,004.92 crore as compared to Rs9,196.52 crore in the corresponding period last year. Profit before interest and tax (PBIT) from power business was Rs3,608.66 crore as against Rs2,159.75 crore due to full commissioning of Mundra and Maithon project and better operating performance by Mumbai licence area and favourable ATE order. PBIT from coal business was at Rs1,029.44 crore as compared to Rs1,988.05 crore reported last year due to lower price realisation from coal companies.

During the quarter ended March 31, 2013, Tata Power’s consolidated revenue was up by 25 percent at Rs9,032.46 crore as compared to Rs7,234.76 crore in the corresponding quarter last year. This was mainly due to additional revenue generated due to full commercial operations of power plants at Mundra and Maithon and higher volume traded by Tata Power Trading.

Operating Profit for the quarter rose by 37 percent at Rs1,439.01 crore as compared to Rs1,050.76 crore in Q4 FY12. The increase is mainly due to units being commissioned in Mundra and Maithon.

The company’s PAT for the quarter was Rs181.36 crore as against Rs628.75 crore reported in the corresponding quarter last year. Last year’s PAT was impacted by deferred stripping charge of Rs324.71 crore and provision for impairment amounting to Rs815 crore for CGPL.

In consolidated segment-wise performance for the quarter, net revenue from power business was up by 41 percent at Rs6,500.20 crore as compared to Rs4,605.01 crore and from coal business was at Rs2,219.09 crore as compared to Rs2,337.83 crore in the corresponding period last year. PBIT from power business was at Rs1,346.57 crore as against Rs588.68 crore in the previous year due to full commissioning of Mundra and Maithon project and better operating performance by Mumbai licence area and favourable ATE order. PBIT from coal business was at Rs170.73 crore as compared to Rs506.47 crore reported in the corresponding period last year due to lower price realisation from coal companies.

Standalone performance highlights

For the financial year ended March 31, 2013, revenue grew by 13 percent at Rs9,567.28 crore as compared to Rs8,495.84 crore last year. The company generated 15,770MUs of power as compared to 15,230MUs and sales stood at 16,002MUs as compared to 15,240MUs in FY12. Operating profit was up by 39 percent at Rs1,687.58 crore as compared to Rs1,214.28 crore mainly due to robust operational performance by Mumbai power business and pursuant to favourable ATE order. PAT stood at Rs1,024.69 crore as against Rs1,169.73 crore mainly due to lower dividends this year from coal companies, reversal of forex losses due to adoption of AS-11 last year, higher finance charges and change in depreciation rates.

For the quarter ended March 31, 2013, standalone revenue was at Rs2,214.27 crore as against Rs2,374.69 crore mainly due to lower fuel cost in Mumbai licenced area. During the quarter, company’s PAT increased by 71 percent to Rs200.03 crore as compared to Rs116.97 crore in Q4 FY12 mainly due to favourable ATE order. This quarter also has an exceptional item of Rs268 crore due to change in depreciation rates adopted by the company as advised by ministry of corporate affairs and methodology notified by CERC leading to net PAT impact of Rs10 crore.

Commenting on the company’s performance, Anil Sardana, managing director, Tata Power, said, “During FY13, the company recorded the highest revenue driven by all round performance of the projects and subsidiaries. The year also witnessed the commissioning of India’s first 4,000MW UMPP to the nation. Tata Power’s generation capacity has now touched 8,521MW with 1.8 million customers, reinforcing our position as India’s largest integrated power player and private power producer. On the distribution front, the company is on track to execute its Jamshedpur mandate while the Mumbai business continues to add new customers at a rapid pace. We continue to expand our international presence with signing of agreements with Clean Energy and IFC for developing hydro projects in Georgia for sale of power primary to Turkey. We are looking forward to expeditious resolution on compensatory tariff to be finalised by a committee set up as per CERC’s direction. CGPL will continue to honour its commitment towards the nation’s energy security by providing reliable and competitive power supply through the project and hope for quicker resolution of the CGPL Mundra and regulatory asset issues.”

Operational highlights

The company continued its robust operations and performed well. Sales volume for the year stood at 16,002MUs as compared to 15,240MUs in FY12. The overall generation was 15,770MUs as compared to 15,230MUs reported in corresponding period last year. The operational performance of Mundra has been equally stellar and the station achieved a milestone by logging a cumulative gross generation of 12,440MUs. The Maithon plant reported 4,588MUs of generation. Trombay thermal power station generated 9,424MUs while hydro power stations generated 1,450MUs.The Jojobera thermal power station generated 3,067MUs and Haldia reported generation of 925MUs. Industrial Energy (IEL) reported generation of 1,706MUs. Wind farms generated 813MUs and solar plant recorded generation of 5MUs.

Business highlights

Coastal Gujarat Power (CGPL): CGPL, an SPV formed for setting up and operating the 4,000MW Mundra UMPP has achieved 100 percent project completion and declared COD’s for all five units including the station COD. Revenue for FY13 stood at Rs2,795.52 crore and PAT at Rs1,602.02 crore. For Q4 FY13, revenue stood at Rs1,345.50 crore and PAT stood at Rs146.89 crore. CERC has notified CGPL of its decision for a compensatory tariff to be paid till the fuel situation stabilises and this positive development is welcome. The details of the proposed compensatory tariff will be finalised by a committee to be set up as per CERC’s direction. CGPL has been delivering to full potential to the five beneficiary states albeit with tremendous fiscal pain. CGPL will continue to honour its commitment towards the nation’s energy security by providing reliable and competitive power supply through the project and hope for quicker resolution of the issues.

Maithon Power (MPL): The 74:26 joint venture between Tata Power and Damodar Valley Corporation reported revenue of Rs1,636.06 crore and PAT at Rs86.31 crore for FY13. Revenues for Q4 FY13 stood at Rs515.94 crore up by 114 percent and PAT stood at Rs11.85 crore as compared to the corresponding quarter last year. Operations of both the units have stabilised, thereby improving the availability significantly.

Industrial Energy (IEL): The company reported revenue of Rs512.83 crore, up by 18 percent and PAT at Rs80.82 crore, up by 4 percent for FY13. Revenues for Q4 FY13 were Rs112.01 crore up 5 percent and PAT stood at Rs19.87 crore.

Tata Power Renewable Energy (TPREL): Revenue for FY13 stood at Rs63.69 crore and PAT at Rs1.11 crore. Q4 FY13 revenues stood at Rs17.82 crore up by 30 percent and PAT was at Rs0.57 crore. In the current quarter, company has commissioned a 21MW wind project at Dalot, Rajasthan.

Tata Power Delhi Distribution (TPDDL): The company’s distribution subsidiary and joint venture with the Delhi government, posted revenue of Rs5,644.26 crore, up 6 percent, and PAT at Rs309.69 crore for FY13. Q4 FY13 revenues stood at Rs1,376.96 crore up 11 percent and PAT stood at Rs117.79 crore, up 59 percent, as compared to the corresponding quarter last year.

Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India reported FY13 revenue at Rs244.38 crore and PAT at Rs119.08 crore, up by 6 percent, as compared to the corresponding period last year. Revenues for Q4 FY13 were at Rs47.07 crore and PAT stood at Rs39.17 crore.

Tata Power Trading Company (TPTCL): TPTCL traded a total of 9,431MUs as compared to 5,583MUs in the previous year. Revenue for FY13 showed significant rise at Rs.3,789.29 crore, up 97 percent, and PAT rose to Rs24.48 crore, up 74 percent over last year. For Q4 FY13, TPTCL traded a total of 3,071MUs in Q4 FY13 as compared to 1,111MUs in the corresponding period last year, resulting in significant rise in revenues at Rs1,254.32 crore, up by 230 percent, and PAT up by 660 percent at Rs6.23 crore.

Growth plans

Distribution franchise for Jamshedpur circle: Subsequent to winning the bid for distribution franchisee of the Jamshedpur circle, a special purpose company, Tata Power Jamshedpur Distribution, has been formed to execute the distribution franchisee agreement with Jharkhand State Electricity Board.

Kalinganagar, Odisha – CPP-1: 202.5MW [3x67.5MW (waste heat recovery)]: The project is being executed through IEL, a joint venture of the company (74 percent) with Tata Steel (26 percent) for its steel plant in Kalinganagar, Odisha. EPC contract has been awarded to Tata Projects. All 12 packages have been awarded to different vendors by Tata Projects. All clearances for the project are in place. The project is in an advanced stage of completion. Boiler drum of Unit 1 has been lifted in March 2013. The Commercial operation date for units 1 and 2 is expected by August 2014.

Tiruldih power project, Jharkhand: The process of land acquisition for the 1,980MW (3x660MW) project has made significant progress. The company has successfully completed public hearing on March 20, 2013 and environment clearance is expected in FY14. The land acquisition process is expected to be completed in FY15. Water allocation for the project is under progress.

International projects

Tata Power, through its subsidiary Tata Power International, has signed an agreement with Clean Energy and IFC for developing hydro projects in Georgia for sale of power primarily to Turkey. The hydro projects will be of an aggregate capacity of 400MW and would be developed in three phases. The first phase of 185MW is expected to be completed before mid 2016. Tata Power and Clean Energy would hold 40 percent stake each. The power generated by the projects is planned to be vended primarily to Turkey. The total project cost is estimated to be about USD 700 million.

Cennergi has been announced as a preferred bidder for the two wind projects of 234MW - 139 MW at Amakhala and 95MW at Tsitsikamma. One of the projects has achieved financial closure and the other one is in the final stages of achieving it.

The 126MW Dagachhu project is being developed in partnership with the Royal Government of Bhutan. Eighty seven percent concreting at the intake-weir and water conductor has been completed. Construction of the power house has been completed. For head race tunnel, 92 percent tunnelling has been completed. Surge shaft excavation and stabilisation have also been completed. Cumulatively, about 9.6km of tunnelling out of total 10.5km has been completed. Most geological uncertainties have been overcome. Ninety eight percent manufacturing of electro-mechanical equipment has been completed and 61percent of the material has been delivered at site. Expected commissioning of the project is by 2014.

Tata Power, along with consortium partners Origin Energy and PT Supraco, won the 240MW Sorik Marapi geothermal project in Indonesia. The environmental permits were received in May, 2012. Land acquisition is progressing well. Exploration work is in progress. PPA finalisation is under process and is taking more time than anticipated. The exploratory drilling is now expected to commence in FY14, after PPA discussions get concluded. The exploration phase of the project is expected to end in FY15.

Awards and recognitions

Tata Power was adjudged the Most Admired Infrastructure Company – Power, at the 5th KPMG Infrastructure Today Awards.

The company was bestowed CII ITC Sustainability Award 2012 for its strong commitment to environment.