Torrent Power (TORNTPOWER) Q4 09/10 earnings summary

Executive summary

• FY2009-10 revenue rose 34.93% to ₹5,823.21 crore, PBDIT increased 123.01% to ₹1,836.17 crore and PAT grew 105.09% to ₹836.55 crore.

• SUGEN’s 1,147.5 MW project was fully commissioned; expansion initiatives span generation, transmission and distribution.

Financial highlights

• Total income was ₹5,956.47 crore vs ₹4,465.40 crore; PBT ₹1,186.45 crore vs ₹484.81 crore; PAT ₹836.55 crore vs ₹407.89 crore.

• Power-supply revenue reached ₹5,823.21 crore vs ₹4,315.76 crore; electrical energy purchases fell to ₹1,395.04 crore from ₹2,260.44 crore.

• Operating cash flow was ₹1,666.16 crore vs ₹668.13 crore; capital expenditure including CWIP was ₹560.49 crore vs ₹723.32 crore.

• Proposed dividend rose to ₹3.00/share, or 30%, from ₹2.00/share; total dividend outflow including tax was ₹165.27 crore.

Outlook and guidance

• Growth plans include a proposed additional 382.5 MW SUGEN unit, with EPC finalization near and environmental clearance underway.

• DGEN at Dahej is planned as three units of ~400 MW each; a 1,000+ MW coal project at Pipavav is progressing, with land acquisition initiated.

• A 50 MW wind project in Gujarat is being developed; Agra distribution franchise operations began 1 April 2010, while Kanpur franchise operations are planned under a 20-year award.