Torrent Power (TORNTPOWER) Q4 06/07 earnings summary

Executive summary

• Six-month period ended 31 Mar 2007 covered Oct 2006–Mar 2007; comparisons with the prior 18-month period are not comparable, also reflecting Bhiwandi operations and seasonality.

• Operations combined 500 MW of existing generation, electricity distribution in Gujarat and the new Bhiwandi franchise; 1,130 MW SUGEN project was progressing toward expected 2007–08 commissioning.

Financial highlights

• Total income Rs 1,432.86 crore; net sales Rs 1,376.21 crore; PBDIT Rs 214.35 crore; PBT Rs 129.69 crore; PAT before contingency reserve Rs 71.76 crore.

• Electricity sales were 3,582 MUs, including exports; net electricity sales were Rs 1,376 crore, about 96% of total revenue, with average realization of Rs 3.84 per unit.

• Interim dividend of Rs 0.40 per share was paid and treated as final; total cash outflow including dividend distribution tax was Rs 21.55 crore.

Outlook and guidance

• SUGEN’s 1,130 MW gas project, budgeted at Rs 3,096 crore, was expected to commission in 2007–08; fuel was tied up and its 22 km gas spur line was complete.

• Growth plans included a 1,000+ MW coal project at Pipavav, a proposed 60 MW Tidong hydro project, further generation opportunities and bids for distribution franchises, including Nagpur.

• SUGEN repayment of term loans was scheduled to begin in 2008; investment plans covered generation, transmission and distribution expansion.