Torrent Power (TORNTPOWER) Q4 07/08 earnings summary

Executive summary

• FY08 delivered higher turnover, PBDIT and PAT, while Ahmedabad, Gandhinagar and Surat T&D losses fell to 8.75%, described as the lowest nationally.

• SUGEN’s 1,147.5 MW project was delayed, with generation expected in FY09; Bhiwandi franchise operations stabilised.

Financial highlights

• Total income was Rs 3,722.00 crore; electricity sales were Rs 3,618.32 crore for the year ended 31 March 2008.

• PBDIT was Rs 584.29 crore, PBT Rs 376.57 crore and net profit Rs 211.24 crore; reported PAT rose 47.19%, though the prior comparison period was six months.

• The board recommended a 12% dividend, or Rs 1.20 per share; total dividend outflow including tax was Rs 66.33 crore.

Outlook and guidance

• SUGEN generation was expected to begin in FY09; the annual report also cited commissioning by end-FY09.

• Plans included 3,000 MW of SUGEN expansion, a ~400 MW first-phase gas plant at Dahej, 2,000+ MW coal capacity at Pipavav and 1,000+ MW at Morga.

• SUGEN was expected to support existing distribution demand and could enable sales outside Gujarat, subject to fuel supply and competitive market rates.