Torrent Power (TORNTPOWER) Q4 13/14 earnings summary

Executive summary

• FY 2013-14 revenue rose 6.62% to ₹8,817.46 crore and PBDIT increased 1.32% to ₹1,458.14 crore; PAT fell 75.36% to ₹94.84 crore.

• Domestic gas shortages and reluctance to buy power generated using expensive LNG cut gas-plant output; higher depreciation, interest and unrecovered distribution power costs further pressured earnings.

Financial highlights

• Standalone revenue from operations was ₹8,575.62 crore versus ₹8,129.87 crore; total revenue was ₹8,817.46 crore versus ₹8,269.97 crore.

• Standalone PBDIT was ₹1,458.14 crore versus ₹1,439.15 crore; depreciation was ₹534.52 crore versus ₹407.93 crore, and finance costs were ₹677.18 crore versus ₹408.48 crore.

• Standalone PBT declined to ₹246.44 crore from ₹622.74 crore; PAT was ₹94.84 crore versus ₹384.96 crore.

• Consolidated revenue was ₹8,931.70 crore versus ₹8,364.53 crore; consolidated PAT after minority interest was ₹105.26 crore versus ₹386.70 crore.

Outlook and guidance

• GERC-approved Ahmedabad and Surat tariff increase averaged 44 paise/kWh, or ~29 paise/kWh after the FPPPA adjustment, effective 1 May 2014; specified low-use residential, BPL and agricultural consumers were excluded.

• DGEN was expected to complete in Q2 FY 2014-15; estimated project cost was ₹6,503 crore, reduced to ₹5,997 crore after ₹506 crore of liquidated damages from Siemens India and Siemens AG.