OREANDA-NEWS. August 11, 2011. Tata Power, India’s Largest Integrated private power utility today announced its consolidated and standalone financial results for the quarter ended 30th June 2011.

Key Highlights Q1 FY 12: Standalone

During the quarter, Company’s standalone results reflected a robust financial and operational performance. Revenues for the quarter up by 3% and stood at Rs. 1921.24 Crores as compared to Rs.1867.90 Crores, in Q1 FY11. Profit after Tax (PAT) increased by 5% to Rs.281.56 Crores as against Rs. 268.98 Crores registered in the corresponding quarter last year. During the quarter, Other income stood at Rs. 247.58 Crores as against Rs. 127.54 Crores in the previous quarter, a rise of 94%. Other Income this quarter also included a dividend of Rs. 201.24 Crores received from the overseas Coal SPVs.

Key Highlights Q1 FY12: Consolidated

On the consolidated basis, Tata Power’s revenues were up by 12% and stood at Rs. 5824.51 Crores as compared to Rs. 5184.84 Crores in the corresponding period last year. The Company’s net profit after appropriations rose by 34% to Rs. 418.57 Crores as against Rs. 311.67 Crores reported in Q1 of FY11.

On consolidated segment-wise performance, Revenues from power business has increased by 6% to Rs. 3720.30 Crores as compared to Rs 3504.81 Crores registered in the corresponding quarter last year. Coal business contributed Rs 1990.69 Crores to the revenues, an increase of 29% as compared to Rs.1539.06 Crores, during the corresponding quarter last year.

PBIT for power business was Rs. 627.00 Crores against Rs. 517.32 Crores. Whereas, PBIT for Coal Business stood at Rs. 750.07 Crores as compared to Rs. 423.97 Crores, 77% higher than the corresponding quarter last year.

Commenting on the Company’s performance, Mr. Anil Sardana, Managing Director, Tata Power, said: “Our robust financial and operational performance for the quarter is driven by all our business divisions. Our operations continue to be stable and our new projects are progressing well.

Our two large projects at Maithon and Mundra are progressing towards commercialization. 4000 MW Mundra UMPP is one of the first ultra mega projects of the country that has progressed faster than schedule. Mundra UMPP has made all contractual preparations including linkages through linked mines abroad for imported coal, linked ports at both ends and shipping for reliability. Our 1050 MW Maithon Mega Power Project’s unit 1 has also achieved full load on coal.”

OPERATIONAL AND BUSINESS HIGHLIGHTS:

During the quarter under review, the Company’s operations continued to be stable. Sales volume for the quarter stood at 3932 MUs and overall generation was 3889 MUs.

Trombay Thermal Power Station generated 2445 MUs as compared to 2799 MUs in the corresponding quarter last year; Hydro Power Stations generated 362 MUs as compared to 358 MUs in the corresponding quarter last year and Belgaum generated 45 MUs as compared to 94 MUs in the corresponding quarter last year. Jojobera Thermal Power Station generated 663 MUs as compared to 850 MUs in the corresponding quarter last year. Haldia reported generation of 219 MUs as compared to 180 MUs in the corresponding quarter last year. Industrial Energy Limited (IEL) reported generation of 399 MUs as compared to 142 MUs in the corresponding period last year. Wind Farms generated 154 MUs as compared to 105 MUs in the corresponding quarter last year. Solar plant recorded in generation of 1 MU.

Mumbai Retail Business:

Retail Customer base in Mumbai was 217634 as of 30th June 2011. New Services for customers include New Bill Collection Centre in Ghatkopar and Bhayender. To drive energy efficiency, the Company has introduced a unique consumer initiative called “My Mumbai Green Mumbai”. The initiative had five programmes and offered significant discounts on energy efficient products.

North Delhi Power Limited (NDPL): The Company’s distribution subsidiary and Joint-Venture with Delhi Govt., NDPL posted revenues of Rs. 1233.60 Crores during Q1 ended 30th June 2011, as compared to Rs. 1117.77 Crores registered in the corresponding period of the previous year. The Profit after Tax was at Rs. 148.20 Crores as against Rs. 56.71 Crores in the corresponding quarter last year. The Appellate Tribunal of Electricity has upheld certain claims relating to the allowability of certain expenses which were earlier disallowed by the DERC in its truing up for the respective financial years. Consequently, an amount bof Rs 122.57 Crores has been accounted for as revenue during the quarter ended 30th June 2011.

Powerlinks Transmission Limited (Powerlinks): Powerlinks, the first public-private Joint-Venture in power transmission in India has earned revenues of Rs. 69.61 Crores in Q1 FY12 as against Rs. 71.52  Crores in the corresponding quarter year. The Profit after Tax stood at Rs. 25.56 Crores as compared to Rs 25.96 crores in the corresponding period last year.

Tata Power Trading Company Limited (TPTCL): TPTCL traded a total of 1563 MUs during the quarter as compared to 1347 MUs in the corresponding period last year, thereby resulting in revenues of Rs 662.14  Crores as compared to Rs. 716.35 Crores in the corresponding quarter last year. The Profit / (Loss) after Tax was at Rs. 5.85  Crores as against Rs.  6.45 Crores in the previous quarter last year.

Fuel and Logistics: Tata Power’s Cape size vessel ‘Trust Integrity’ attained a significant milestone by supplying coal to  4000 MW Ultra Mega Power Project at Mundra. The Cape size vessel owned by the Singapore subsidiary- Trust Energy Resources Pte Ltd anchored at the Mundra Port on 27th July 2011. ‘Trust Integrity’ the 181,000 DWT tonnage cape vessel delivered from STX Shipyard, Korea  carried coal from KPC / Arutmin mines, Indonesia to the Mundra port, during her maiden voyage. 

Hybrid Capital offering issue of USD 450 Million:

Tata Power through its wholly owned subsidiary- Bhira Investments Limited priced on 19th April 2011, a USD 450 Million 60 year (Non-callable for 5 years) hybrid capital securities offering guaranteed by Tata Power, at 8.5% p.a., payable semi-annually. The proceeds of the issue of the securities will be applied by the issuer to fund its corporate and acquisition activities and to repay an outstanding loan.

Perpetual Debentures:

The Company launched an offering of Perpetual Debentures of Rs. 1,500 Crores. The unique features of the Debentures are that they are perpetual in nature with no maturity or redemption and are callable only at the option of the Company. The distribution on the said Debentures, which may be deferred at the option of the Company under certain circumstances, is set at 11.40% p.a., with a step up provision if the Debentures are called after 10 years.

AA/Positive’ Rating to Perpetual Debentures:

Rating agency CRISIL has assigned ‘AA/Positive’ rating to its issue of Rs.1500 Crores unsecured, listed, subordinated, perpetual debentures. CRISIL has accorded 50 per cent equity content to this instrument.

CARE Rating for Perpetual Debentures:

Rating agency CARE assigned ‘CARE AA’ Rating to its Perpetual Debenture Issue. Considering the terms of the issue, CARE would accord 50 per cent equity content to this document.

GROWTH PLANS:

The progress on Company’s new projects is as follows:

4000 MW, Mundra Ultra Mega Power Project (UMPP): Mundra UMPP is progressing as per schedule with engineering, procurement and construction activities in full swing. Overall project progress achieved is 85%. Unit 1 Boiler was lit up in March 2011 and steam blowing was completed in May 2011. The first unit is now ready for synchronization since 29th June 2011 and is awaiting transmission evacuation system.

1050 MW Maithon Project: The Unit 1 has achieved full load on 30th June 2011. Commercial Operation Date (COD) is expected by August end 2011.

114 MW Dagachhu Project: in partnership with The Royal Government of Bhutan (RGoB) is progressing well. Major ordering for the project has been completed. All statutory clearances, land, water and environment clearances have been received and PPA for the entire quantum of power has been signed for the project. Infrastructure activities like approach road, bridges, construction power, etc. have been completed. The first unit is targeted to be commissioned by March 2013.

236 MW Dugar Hydro Power Project : Tata Power - SN Power Consortium JV won the bid for 236 MW Dugar Hydro Power Project in Himachal Pradesh. The capacity for Dugar Hydro Electric Project is estimated to be approximately 236 MW. The run of the river “Dugar Hydro Electric Project” will primarily feed the Northern grid.

Renewable Projects:

Wind Power: Tata Power is the leading private wind generation company with an installed capacity of 283 MW. Tata Power’s wind power capacity is spread across three states- Maharashtra, Gujarat and Karnataka. Additional 93 MW of capacity is under commissioning.

Solar Power: The Company is developing a 25 MW solar PV plant in Mithapur, Gujarat and has signed a PPA with GUVNL for the same.

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

1980 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. Tubed Coal Block has been jointly allotted to Tata Power and Hindalco in Jharkhand.

Kalinganagar, Orissa 652.5 MW (Gas based)+3X150 MW (Coal+gas based)

The project is being executed through Industrial Energy Limited a JV of the Company with Tata Steel. Tata Steel has commenced its project (3 MTPA steel plant) related works and has requested the Company to initiate the enabling works related to 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.

1600 MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. Disbursement of compensation to land owners is in progress by Raigad District Authorities and over 50% of private land has been covered till date. The Company also signed an Agreement with Maharashtra State Government for the R&R package for the farmers in the Dehrand / Shahpur villages. Economic options for coal sourcing and logistics are under evaluation.

660 MW Naraj Marthapur, Orissa: The major clearances for the project have been obtained. Land acquisition is currently in progress. The Environment Clearance has been granted by MoEF, subject to clearance from National Board of Wild Life for which the process is on.

SUSTAINABILITY INITIATIVES:

Tata Power Energy Club:

In FY12, Tata Power Energy Club will be reaching out to 285 schools nationwide (Mumbai, Delhi, Kolkata, Pune, Ahmedabad, Bengaluru, Lonavla, Jamshedpur, Belgaum) to sensitised over  1.5 million citizens across the country and saved more than 2.5 million units. The Club has a strong, sustainable and replicable model to spearhead a movement. It is targeting 1000 self-sustaining Mini Energy Clubs this year across the country.

AWARDS AND RECOGNITIONS:

Tata Power received the prestigious ‘Vasundhara Award’ in the industry category by Maharashtra Pollution Control Board (MPCB). from the Honourable Chief Minister of Maharashtra, Prithviraj Chavan at a function organised in Y.B Chavan Hall on the occasion of World Environment Day.

Tata Power was conferred the prestigious BML Munjal Award for Excellence in Learning & Development for the year 2011 in private sector category.

Tata Power Energy Club, Tata Power’s nationwide energy conservation movement led by school children, has been bestowed the ‘Best Marketing Campaign of the Year’ Award by CMO Asia Awards 2011 at Singapore. The Best Marketing Campaign of the Year award is bestowed to recognize a firm/organization for designing a powerful and successful energy conservation campaign.The Club has also been recognized internationally and was bestowed the ‘Most Innovative Campaign’ award at USA’s The Energy Daily’s 2010 Leadership Awards. It has been recently shortlisted in the Final Nominees list of the 2nd CMO Asia Awards for Excellence in Branding & Marketing.

Tata Power featured among the top 50 India’s Best Companies to work for study done by Great Place to work institute and was ranked number 38.