Friday, May 31, 2013: Tata Power, India’s largest integrated power Company today announced its results for the financial year ended March 31, 2013.
PERFORMANCE HIGHLIGHTS: CONSOLIDATED
· On the consolidated basis, Tata Power Group’s FY13 Revenue was up by 27% to Rs. 33,025.43 crore as compared to Rs. 26,001.40 crore last year mainly on account of additional revenue generated from CGPL Mundra, Maithon, higher revenue of TPDDL on account of increase in power purchase cost and higher volume traded by Tata Power Trading. Operating Profit was up 15% at Rs. 4,580.65 crore as compared to Rs. 3,990.63 crore in the corresponding period last year. PAT stood at Rs. (85.43) crore, as against Rs. (1087.68) crore reported in FY12. This is largely due to better operating performance, lesser impairment provision on account of CGPL
Mundra of Rs. 850 crores this year and writing down of another Rs 100 crore of investments. Last year’s PAT included provisions of Rs. 1800 crore of impairment for Mundra project and Rs 659.44 crore of deferred stripping costs, a total provision of Rs 2460 crore.
· On a consolidated Financial Year Segment-wise performance, Net Revenue from Power business was up by 44% at Rs. 23,216.08 crore as compared to Rs. 16,169.59 crore and from Coal Business was at Rs. 9,004.92 crore as compared to Rs. 9,196.52 crore in the corresponding period last year. Profit before Interest and Tax (PBIT) from Power Business was Rs. 3,608.66 crore as against Rs. 2,159.75 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 Rs. 1,029.44 crore as compared to Rs. 1,988.05 crore reported last year due to lower price realization from coal companies.
· During the quarter ended 31st March 2013, Tata Power’s consolidated Revenue was up by 25% at Rs. 9,032.46 crore as compared to Rs. 7,234.76 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% at Rs.1,439.01 crore as compared to Rs. 1,050.76 crore in Q4FY12. The increase is mainly due to units being commissioned in Mundra and Maithon.
· The Company’s PAT for the quarter was Rs. 181.36 crore as against Rs. (628.75) crore reported in the corresponding quarter last year. Last year’s PAT was impacted by Deferred Stripping charge of Rs 324.71 crore and provision for impairment amounting to Rs 815 crore for CGPL.
· In consolidated Segment-wise performance for the quarter, Net Revenue from Power business was up by 41% at Rs. 6,500.20 crore as compared to Rs. 4,605.01 crore and from Coal Business was at Rs. 2,219.09 crore as compared to Rs. 2,337.83 crore in the corresponding period last year. PBIT from Power Business was at Rs. 1,346.57 crore as against Rs. 588.68 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 Rs. 170.73 crore as compared to Rs. 506.47 crore reported in the corresponding period last year due to lower price realization from coal companies.
PERFORMANCE HIGHLIGHTS: STANDALONE
· For the Financial Year ended March 31st 2013, Revenue grew by 13% at Rs. 9,567.28 crore as compared to Rs. 8,495.84 crore last year. The Company generated 15,770 MUs of power as compared to 15,230 MUs and Sales stood at 16,002 MUs as compared to 15,240 MUs in FY12. Operating Profit was up by 39% at Rs 1,687.58 crore as compared to Rs 1,214.28 crore mainly due to robust operational performance by Mumbai power business and pursuant to favourable ATE order. PAT stood at Rs. 1,024.69 crore as against Rs.1,169.73 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 31st 2013, Standalone Revenue was at Rs. 2,214.27 crore as against Rs. 2,374.69 crore mainly due to lower fuel cost in Mumbai Licenced Area. During the quarter, Company’s PAT increased by 71% to Rs. 200.03 crore as compared to Rs.116.97 crore in Q4FY12 mainly due to favourable ATE order. This quarter also has an exceptional item of Rs 268 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 Rs 10 crore.
Commenting on the Company’s performance, Mr. Anil Sardana, Managing Director, Tata Power said, “During the financial year 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 4000 MW UMPP to the nation. Tata Power’s generation capacity has now touched 8521 MW 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 finalized 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 & 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 16,002 MUs as compared to 15,240 MUs in FY12. The overall generation was 15,770 MUs as compared to 15,230 MUs reported in corresponding period last year. The operational performance of Mundra has been equally stellar and the Station achieved milestone by logging a cumulative gross generation of 12,440 MUs. Maithon Plant reported 4,588 MUs of generation. Trombay Thermal Power Station generated 9,424 MUs while Hydro Power Stations generated 1,450 MUs. Jojobera Thermal Power Station generated 3,067 MUs and Haldia reported generation of 925 MUs. Industrial Energy Limited (IEL) reported generation of 1,706 MUs. Wind Farms generated 813 MUs and Solar plant recorded generation of 5 MUs.
BUSINESS HIGHLIGHTS: KEY SUBSIDIARIES
· Coastal Gujarat Power Limited (CGPL): CGPL, an SPV formed for setting up and operating the 4000 MW Mundra UMPP has achieved 100% Project completion and declared COD’s for all five units including the Station COD. Revenue for FY13 stood at Rs. 2,795.52 crore and PAT at Rs. (1,602.02) crore. For Q4 FY 13, Revenue stood at Rs. 1,345.50 crore and PAT stood at Rs. (146.89) crore. CERC has notified CGPL of its decision for a compensatory tariff to be paid till the fuel situation stabilizes and this positive development is welcome. The details of the proposed compensatory tariff will be finalized 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 & competitive power supply through the project and hope for quicker resolution of the issues.
· Maithon Power Limited (MPL): The 74:26 Joint Venture Company between Tata Power and Damodar Valley Corporation reported Revenue of Rs.1,636.06 crore and PAT at Rs. (86.31) crore for FY13. Revenues for Q4FY13 stood at Rs. 515.94 crore up by 114 % and PAT stood at Rs. (11.85) crore as compared to the corresponding quarter last year. Operations of both the units have stabilized, thereby improving the availability significantly.
· Industrial Energy Limited (IEL): The Company reported Revenue at Rs.512.83 crore, up by 18 % and PAT at Rs. 80.82 crore up by 4% for FY13. Revenues for Q4 FY 13 were Rs.112.01 crore up 5% and PAT stood at Rs.19.87 crore.
· Tata Power Renewable Energy Limited (TPREL): Revenue for FY13 stood at Rs.63.69 crore and PAT at Rs. 1.11 crore. Q4 FY13 Revenues stood at Rs. 17.82 crore up by 30% and PAT was at Rs. 0.57 crore. In the current quarter, Company has commissioned 21 MW Wind Project at Dalot, Rajasthan.
· Tata Power Delhi Distribution Limited: The Company’s distribution subsidiary and Joint-Venture with Delhi Government, posted Revenue of Rs. 5,644.26 crore up 6% and PAT at Rs. 309.69 crore for FY13. Q4FY13 revenues stood at Rs. 1,376.96 crore up 11% and PAT stood at Rs.117.79 crore up 59% as compared to the corresponding quarter last year.
· Powerlinks Transmission Limited (Powerlinks): Powerlinks, the first public-private Joint-Venture in power transmission in India reported FY13 Revenue at Rs.244.38 crore and PAT at Rs. 119.08 crore up by 6% as compared to the corresponding period last year. Revenues for Q4FY13 were at Rs. 47.07 crore and PAT stood at Rs. 39.17 crore.
· Tata Power Trading Company Limited (TPTCL): TPTCL traded a total of 9,431 MUs as compared to 5,583 MUs in the previous year. Revenue for FY13 showed significant rise at Rs.3,789.29 crore up 97% and PAT rose to Rs. 24.48 crore up 74% over last year. For Q4FY13, TPTCL traded a total of 3,071 MUs in Q4FY13 as compared to 1,111 MUs in the corresponding period last year, resulting in significant rise in revenues at Rs. 1,254.32 crore up by 230% and PAT up by 660% at Rs. 6.23 crore.
GROWTH PLANS:
· Distribution Franchise for Jamshedpur circle: Subsequent to winning the bid for Distribution Franchisee (DF) of Jamshedpur Circle, a Special Purpose Company (SPC) ‘Tata Power Jamshedpur Distribution Ltd.’ has been formed to execute the Distribution Franchisee Agreement (DFA) with Jharkhand State Electricity Board (JSEB).
· Kalinganagar, Odisha – CPP-1: 202.5 MW [3×67.5 MW (Waste Heat Recovery)]: The project is being executed through Industrial Energy Limited (IEL), a JV of the Company (74%) with Tata Steel Limited (Tata Steel) (26%) for its steel plant in Kalinganagar, Odisha. EPC contract has been awarded to Tata Projects Ltd. (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 (COD) for Units 1 & 2 is expected by August 2014.
· Tiruldih Power Project, Jharkhand: The process of land acquisition for the 1,980 MW (3×660 MW) project has made significant progress. The Company has successfully completed Public Hearing on 20th March, 2013 and Environment Clearance (EC) is expected in FY14. The land acquisition process is expected to be complete in FY15. Water allocation for the project is under progress.
International Projects:
· Hydro Projects in Georgia: Tata Power India’s largest integrated power company through its subsidiary Tata Power International Pte Ltd, has signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures for developing hydro projects in Georgia for sale of power primarily to Turkey. The hydro projects will be of an aggregate capacity of 400 MW and would be developed in three phases. The first phase of 185 MW is expected to be completed before mid 2016. Tata Power and Clean Energy would hold 40% 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 700 Million USD.
· Cennergi has been announced as a preferred bidder for the two wind projects of 234 MW – Amakhala 139 MW and Tsitsikamma 95 MW projects. One of the projects has achieved financial closure and the other one is in the final stages of achieving it.
· 126 MW Dagachhu Project: is being developed in partnership with The Royal Government of Bhutan (RGoB). 87% concreting at the intake-weir and water conductor has been completed. Construction of power house has been completed. For Head race tunnel, 92% tunnelling has been completed. Surge Shaft excavation and stabilization have also been completed. Cumulatively, about 9.6 kilo meters of tunnelling out of total 10.5 kilo meters has been completed. Most geological uncertainties have been overcome. 98% manufacturing of electro-mechanical equipment has completed and 61% of the material has been delivered at site. Expected commissioning is by 2014.
· 240 MW Geothermal Project: 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. Land acquisition is progressing well. Exploration work is in progress. PPA finalization 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 as ‘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
