Tata Power Company (TATAPOWER) Q4 12/13 earnings summary

Executive summary

• Installed generation capacity reached 8,521 MW; FY13 generation was 34,682 MUs, with commissioning of the 4,000 MW Mundra and 1,050 MW Maithon projects.

• Consolidated revenue rose 27% to ₹33,025.43 crore; the consolidated loss narrowed to ₹85.43 crore from ₹1,087.68 crore.

• Standalone PAT was ₹1,024.69 crore, down from ₹1,169.73 crore, while operating profit rose 13% to ₹2,024.06 crore.

Financial highlights

• Standalone operating revenue increased 13% to ₹9,567.28 crore; PBT was ₹1,703.38 crore versus ₹1,682.87 crore.

• Consolidated operating profit increased 31% to ₹6,444.70 crore; PBT reached ₹1,276.68 crore versus ₹507.25 crore.

• Consolidated finance costs rose 73% to ₹2,635.53 crore, reflecting higher borrowings and commissioning at CGPL and MPL.

• Consolidated loss improvement reflected lower Mundra impairment of ₹850 crore versus ₹1,800 crore and no FY13 deferred-stripping charge; FY12 included ₹659.44 crore.

• Standalone basic EPS was ₹3.44 versus ₹4.53; lower dividends from coal investments, higher finance charges and tax provisioning weighed on PAT.

Outlook and guidance

• CGPL targeted FY14 generation of ~28,000 MUs following full commissioning of its five units.

• 80 MW of wind capacity was proposed for commissioning in FY14 across Maharashtra and Rajasthan; over 160 MW of Indian wind projects were under development.

• A 28.8 MW Maharashtra solar PV plant was under development; suitable land parcels were being pursued across four states for solar projects.

• The 202.5 MW Kalinganagar waste-heat recovery project was in advanced execution; all clearances were in place and Unit 1’s boiler drum was lifted in March 2013.

• CERC’s committee began work on a compensatory tariff for CGPL; resolution was sought to address the coal-cost under-recovery under the PPA.