Tata Power Company (TATAPOWER) Q4 08/09 earnings summary

Executive summary

• FY09 standalone operating revenue rose 22.3% YoY to Rs 7,236.23 crore; PAT reached a record Rs 922.20 crore, up 6%.

• Consolidated revenue increased 61.49% YoY to Rs 17,587.53 crore and PAT rose 15.51% to Rs 1,218.74 crore; coal operations and a full year of consolidation for certain businesses supported growth.

• Annual generation reached a record 14,807 MUs; 250 MW Trombay Unit 8 and 90 MW at Haldia were commissioned during the year.

Financial highlights

• Standalone total income rose 22.68% to Rs 7,868.58 crore; operating profit increased 21.8% to Rs 1,140.94 crore.

• Standalone basic EPS rose 13.07% to Rs 43.69; distributable profits were Rs 967.50 crore versus Rs 811.31 crore in FY08.

• Consolidated total income rose 59.03% to Rs 18,151.47 crore; PBT before associate share, minority interest and appropriations reached Rs 2,463.83 crore.

• Fuel cost increased to Rs 4,813.47 crore from Rs 3,714.99 crore, primarily due to higher domestic and international prices; interest and finance charges rose to Rs 327.76 crore.

Outlook and guidance

• Mundra UMPP’s first unit was expected by September 2011, ahead of the original August 2012 schedule; project progress exceeded 23% and financing disbursements followed plan.

• Maithon’s first unit was expected in Q3 FY11 and second by Q1 FY12; estimated cost was Rs 4,450 crore, funded at a 70:30 debt-equity ratio.

• Haldia Unit 3, at 30 MW, was scheduled for Q1 FY10 and expected to be fully utilised by Q3 FY10; an additional 47.30 MW of wind capacity was planned for FY10.

• A 250 kW biomass gasification project was expected to be commissioned in FY10; 500 MW and 1,000 MW coal-fired plants using captive blocks were expected to start operations in 2013.