Tata Power Group Announces FY2013-14 Consolidated Results
OREANDA-NEWS. Recommends higher dividend of 125% due to relief provided by CERC order.
Reports growth in revenues, healthy operating profits and strong operational performance.
Board recommends higher Dividend at Rs. 1.25 per share.
FY13-14 Consolidated Revenue is up by 8% at Rs. 35,648.70 crore due to strong operational performance; Operating Profit up 8% at Rs. 4976.83 crore and Profit After Tax (PAT) at Rs (259.97) crore.
Tata Power Q4 Consolidated Revenue down by 2% at Rs.8844.50 crore, Operating Profit stood at Rs.1097.30 crore and PAT at Rs. (145.33) crore.
CGPL has not accounted revenue of Rs.1019.06 crore towards Compensatory Tariff for the period from 1st April, 2012 to 31st March, 2014 due to significant amount associated nor reversed the provision of impairment of Rs 2650 crore till further progress is achieved on payout and proceedings.
Editorial Synopsis:
Key Financial Highlights: FY14 vs FY13
Dividend recommended is Rs. 1.25 per share as compared to Rs. 1.15 per share
Consolidated Revenue up by 8% at Rs. 35648.70 crore as compared to Rs. 33,025.43 crore
Consolidated PAT at Rs.(259.97) crore as compared to Rs. (85.43) crore
Standalone Revenue stood at Rs 8627.04 crore as compared to Rs. 9,567.28 crore
Standalone PAT at Rs. 954.08 crore as compared to Rs. 1,024.69 crore
Key Financial Highlights: Q4 FY14 vs Q4 FY13
Consolidated Revenue down by 2% at Rs.8,844.50 crore as compared to Rs. 9,032.46 crore
Consolidated PAT at Rs. (145.33) crore as compared to Rs. 181.36 crore
Standalone Revenue at Rs. 1,812.09 crore as compared to Rs. 2,214.27 crore
Standalone PAT stood at Rs. 84.18 crore as compared to Rs. 200.03 crore
Key Business and Growth Highlights:
Appointed Mr. Ashok S. Sethi as Executive Director of the Company effective 7th May 2014
Appointed Mr. Ramesh N Subramanyam as the new Chief Financial Officer (CFO), effective March 31, 2014
Concluded Rights Issue of Rs. 1,993.38 crore, oversubscribed by 1.96 times
1.96 times the size of the Completed acquisition of 100% shareholding in AES Saurashtra Windfarms Pvt. Ltd. (ASW), the erstwhile 100% subsidiary of AES Corporation
Signed an agreement to sell 30% stake in Arutmin Coal & retains KPC mines. Continues to hold its 30% equity stake in PT Kaltim Prima Coal ("KPC")
Mumbai: Tata Power, India's largest integrated power Company, today announced its results for the financial year ended March 31, 2014.
PERFORMANCE HIGHLIGHTS: CONSOLIDATED
On a consolidated basis, Tata Power Group's FY14 Revenue was up by 8% to Rs. 35648.70 crore as compared to Rs. 33,025.43 crore last year mainly due to full operations of Mundra UMPP, Maithon's additional 150 MW long term sale tie up with WBSEDL, high units sold by TPTCL as well as higher sales volume by Tata Power Solar.
Operating Profit was up 8% at Rs.4976.83 crore as compared to Rs.4,586.81 crore in the corresponding period last year driven by full operations of Mundra UMPP and Maithon's improved operational profit due to additional tie up of 150 MW sale and favourable ATE order for Mumbai operations. This was despite lower coal prices affecting coal mines profitability.
PAT stood at Rs. (259.97) crore, as against Rs (85.43) crore reported in FY13 mainly due to forex losses.
On a consolidated Financial Year Segment-wise performance, Net Revenue from Power business was up by 8% at Rs.25,268.18 crore as compared to Rs.23,382.73 crore and from Coal Business was up at Rs.9,693.90 crore as compared to Rs.9,140.99 crore in the corresponding period last year. Profit before Interest and Tax (PBIT) from Power Business was up at Rs.3,732.84 crore as against Rs 3,087.58 crore mainly due to all 5 units fully operational for Mundra UMPP. PBIT from Coal Business was at Rs.1,069.41 crore as compared to Rs. 1,499.95 crore reported last year mainly due to lower price realization.
During the Quarter ended 31st March 2014, Tata Power's consolidated Revenue was down by 2% at Rs. 8,844.50 crore as compared to Rs. 9,032.46 crore in the corresponding quarter last year driven by full operation of Mundra UMPP.
Operating Profit for the quarter down by 24% at Rs. 1097.30 crore as compared to Rs.1,440.99 crore in Q4FY13 due to price realization for coal mining. Last year's operating Profit was higher due to Depreciation rate adjustment.
The Company's PAT for the quarter stood at Rs.(145.33) crore as against Rs.181.36 crore reported in the corresponding quarter last year mainly due to full year operation of Mundra UMPP. PAT for the current quarter has also been impacted by exceptional item accounted last year which is one time impact of Depreciation rate adjustment.
In consolidated Segment-wise performance for the quarter, Net Revenue from Power business stood at Rs.5982.91 crore as compared to Rs.6,531.71 crore mainly due to lower generation in Mumbai operations and power purchase costs. Revenue from Coal Business was up at Rs. 2414.90 crore as compared to Rs.2345.47 crore in the corresponding period last year. PBIT from Power Business was at Rs.780.87 crore as against Rs. 1112.59 crore in the previous year and PBIT from Coal Business was up at Rs. 476.80 crore as compared to Rs. 374.56 crore reported in the corresponding period last year due to higher coal mine profits.
PERFORMANCE HIGHLIGHTS: STANDALONE
For the Financial Year ended March 31st 2014, Revenue stood at Rs. 8627.04 crore as compared to Rs. 9,567.28 crore last year.
The Company generated 13,183 MUs of power as compared to 15,770 MUs, impacted by lower generation primarily at its Mumbai Operation while Sales stood at 14,516 MUs as compared to 16,002 MUs in FY13.
The Company's Operating Profit was higher at Rs 1967.15 crore as compared to Rs 1,693.74 crore due to favourable ATE order in Mumbai Licence Area.
PAT stood at Rs 954.08 crore as against Rs. 1,024.69 in the corresponding period last year mainly due to forex losses. Last year's operating Profit also had an exceptional item pertaining to Depreciation rate adjustment.
For the Quarter ended March 31, 2014, Standalone Revenue was at Rs. 1812.09 crore as against Rs. 2,214.27 crore mainly due to lower generation primarily at Mumbai Operations.
Profit from Operation stood at Rs. 334.16 crore mainly due to continuing strong operational performance and favourable regulatory orders in Mumbai License Area as against Rs 655.72 crore.
PAT stood at Rs. 84.18 crore as compared to Rs. 200.03 crore in corresponding period last year.
Commenting on the Company's performance, Mr. Anil Sardana, Managing Director, Tata Power said, “During the year 2013-14, the Company continued its strong operational performance across all its businesses despite very challenging circumstances. CGPL has not recognized aggregate revenue of Rs.1019.06 crore for the present towards Compensatory Tariff, considering that a payout is awaited and we hope this get resolved quickly. The Company has received independent legal advice that it has good arguable case and is monitoring progress closely.
On the distribution front, the quarter also witnessed significant investments and has grown network in Mumbai & Delhi and looks forward to progress in Jamshedpur circle soon Led by consumers exercising their 'right to choose' a preferred power supplier, the last quarter also witnessed Tata Power crossing 500,000 consumers in the city. Our focus is to reach 2 Million happy consumers in India in next year.”
BUSINESS HIGHLIGHTS: KEY SUBSIDIARIES
Coastal Gujarat Power Limited (CGPL): CGPL, the SPV which operates the 4000 MW Mundra UMPP is fully operational now. The Company posted Revenues of Rs. 1578.63 crore as compared to Rs. 1345.50 crore in Q4 FY13, jump of 17% on account of full operations of 5 units. PAT stood at Rs. (327.72) crore as compared to Rs. (146.87) crore.
Maithon Power Limited (MPL): The 74:26 Joint Venture Company between Tata Power and Damodar Valley Corporation reported Revenue of Rs. 579.88 crore, up 12%. PAT stood at Rs.18.86 crore as compared to Rs.(11.85) crore in Q4 FY13.
Industrial Energy Limited (IEL): The Company reported Revenues of Rs.117.55 crore compared to Rs.112.01 crore in Q4 FY13, up by 5% and PAT stood of Rs.20.84 crore as compared to Rs.19.87 crore in Q4 FY13, up by 5% as compared to the same quarter last year.
Tata Power Renewable Energy Limited (TPREL): Q4 FY14 Revenues stood at Rs. 25.56 crore compared to Rs. 17.81 crore in Q4 FY13, up by 44% and PAT was up at Rs. 1.17 crore, as compared to Rs. 0.56 crore in Q4FY13.
Tata Power Delhi Distribution Limited (TPDDL): TPDDL, the Company's distribution subsidiary and Joint Venture with Delhi Government, posted revenues of Rs.1,429.23 crore as compared to Rs. 1,376.96 crore in corresponding quarter last year. PAT was at Rs.92.69 crore as compared to Rs. 117.79 crore in Q4FY13.
Powerlinks Transmission Limited (Powerlinks): Powerlinks, the first public-private Joint-Venture in power transmission in India reported Revenues of Rs. 63.37 crore in Q4 FY14 ascompared to Rs. 47.07 crore in Q4 FY13. PAT stood at Rs 29.83 crore, as compared to Rs. 39.17 crore in Q4 FY13.
Tata Power Trading Company Limited (TPTCL): TPTCL traded 11488 MUs as compared to 9269 MUs in the corresponding period last year, resulting in revenues of Rs.1023.37 crore as compared to Rs.1254.32 crore in Q4 FY13. PAT was up at Rs.9.65 crore as compared to Rs.6.13 crore in Q4FY13.
GROWTH PLANS:
Dugar Hydroelectric JV Project: The pre-feasibility has been completed by the consortium team. The geo-technical investigations required for submission of Detailed Project report have been completed in December 2013. Hydrological studies have been approved by CEA/CWC. Liaison with Government authorities on various required clearances is being done.
1600 MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. The project is in advance stages of land acquisition.
1980 MW Tiruldih Power Project, Jharkhand: The process of land acquisition for the project has made significant progress. The land acquisition process is in an advanced stage. Various survey studies like hydrology survey for water intake point finalization, river high flood level survey for finalizing plant boundary, hydro-geology survey for rain water/ ground water harvesting and satellite imagery have been completed.
660 MW Naraj Marthapur Project, Odisha: The clearance from National Board of Wildlife, which has not met for the last two years, is awaited. With a view to expedite end use plant for Mandakini captive coal, the Company is pursuing alternative land as well suitable disposal of the existing site.
International Projects:
Cennergi - Tsitsikamma and Amakhala Projects: The Company's Joint Venture in South Africa, Cennergi has made steady progress and has achieved financial closure for the above referred two wind projects.
126 MW Dagachhu Project: This project is being developed in partnership with The Royal Government of Bhutan. The civil works are progressing as planned and 99% concreting has been completed. Tunnel excavation and tunnel lining is in progress. Slope stabilization and the concreting works for the headrace channel are in progress. Fish ladder is being constructed. 75% erection of turbines has been completed and overall 65% electro-mechanical erection has been completed. The project is being pursued to be commissioned around May 2014, before monsoon.
Hydro Projects, Georgia - The Company has announced start of construction of first phase of 185 MW Shuakhevi Hydropower Project in Georgia being implemented through a JV with Clen Energy Invest AS (Clean Energy) and IFC InfraVentures for developing hydro projects in Georgia, for sale of power primarily to Turkey. During the quarter, a ground breaking ceremony for construction of the first phase of 185 MW Shuakhevi Hydropower Project was held.
Renewable Energy projects: Wind Power - The Company is one of the leading wind power utilities in the country with an installed capacity of 398 MW. TPREL, a 100% subsidiary of Tata Power, India's largest integrated power company acquired AES Saurashtra Wind farms Pvt. Ltd. (ASW), a 100% subsidiary of AES Corporation having 39.2 MW wind farm in Gujarat.
Solar Power - The Company's existing solar capacity is 28+ MW and it is in the process of acquiring land in the states of Maharashtra, Rajasthan, Gujarat and Karnataka to develop solar projects. The Company is also developing a 28.8 MW Solar Photovoltaic power plant in Maharashtra to meet its Solar Renewable Purchase Obligations.
AWARDS AND RECOGNITIONS:
Tata Power conferred with the CII ITC Sustainability Award 2013 for sustainable development.
Tata Power honoured by Central Electricity Authority, Ministry of Power in New Delhi on it Meritorious Performance in Generation and Distribution.
Tata Power Mundra UMPP honoured by Central Electricity Authority, Ministry of Power in New Delhi for Early Completion of Unit 5.
Indian Register Quality Systems (IRQS) certified Maithon Power Limited for successful implementation of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.
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