Torrent Power (TORNTPOWER) Q4 08/09 earnings summary

Executive summary

• FY09 total income rose 19.28% YoY; PBDIT increased 40.91% and PAT grew 93.09%, supported by lower distribution losses and improved operating performance.

• The 1,147.5 MW SUGEN project was synchronized and expected to begin commercial operations in Q1 FY10, subject to full gas availability.

Financial highlights

• Total income was ₹4,465.40 crore vs ₹3,722.09 crore; profit before tax was ₹484.81 crore vs ₹376.57 crore.

• PAT was ₹407.89 crore vs ₹211.24 crore; profit after the ₹1 crore contingency-reserve transfer was ₹406.89 crore.

• Adjusted for the contingency-reserve transfer, EPS was ₹8.63 vs ₹4.47; consolidated PAT was ₹406.17 crore and EPS ₹8.60.

• Standalone sale of electrical energy was ₹4,315.76 crore vs ₹3,618.32 crore; other income rose to ₹142.99 crore from ₹96.49 crore.

Outlook and guidance

• SUGEN commercial operations were expected in Q1 FY10; operations depend on full availability of required gas despite fuel arrangements with GAIL and Reliance Industries.

• Growth plans included a phased 1,500 MW gas plant at Dahej, a 2,000+ MW coal project at Pipavav, and 3,000 MW additional capacity at SUGEN in two phases.

• A 49.6 MW wind-power purchase agreement was signed; own wind and solar generation were under evaluation.

• ERP implementation was expected to be realized in Q3 FY10, with anticipated improvements to stakeholder services and business decision-making.