• Tata Power’s Q1 consolidated revenue at Rs7,253.89 crore, up 25 percent; Q1 standalone revenue at Rs2,284.10 crore, up 19 percent
  
• Consolidated PAT stood at Rs145.93 crore compared to Rs628.74 crore in Q4 FY12
• Standalone PAT stood at Rs312.30 crore, up 11 percent due to strong operational performance of power business
• Company files petition with CERC for tariff revision for Mundra UMPP. Unit 2 of Mundra UMPP achieves commercial operation in record time

Editorial synopsis

• Consolidated Q1 FY13 consolidated revenue for the quarter up by 25 percent at Rs7,253.89 crore as compared to Rs5,824.51 crore in Q1 FY12
• Consolidated PAT at Rs145.93 crore as compared to Rs628.74 crore in Q4 FY12

Standalone Q1 FY13

• Revenues for the quarter up 19 percent at Rs2,284.10 crore as compared to Rs1,921.24 crore in Q1 FY12
• PAT stood at Rs312.30 crore, up 11 percent as compared to Rs281.56 crore in Q1 FY12

Key business and growth highlights

• Generation capacity crosses 6,000MW
• Achieves commercial operations of 525MW Unit 2 at Maithon Project and 800MW Unit 2 of Mundra UMPP
• Department of energy, government of South Africa announced Cennergi (South African joint venture with Exxaro) as preferred bidder for two wind projects of 234MW
• Signs a long term coal supply agreement and right to 26 percent ownership with PT Antang Gunung Meratus, Indonesia
• 25MW solar plant in Mithapur crosses 11,000MWh units milestone

Mumbai: Tata Power, India’s largest integrated power company today announced its results for the quarter ended June 30, 2012.

Performance highlights Q1 FY13: Consolidated

• On the consolidated basis, Tata Power’s Q1 FY13 Revenues increased 25 percent to Rs7,253.89 crore as compared to Rs5,824.51 crore in corresponding quarter last year
• PAT stood at Rs145.93 crore as compared to Rs628.75 crore in Q4 FY12 and Rs430.44 crore in Q1 FY12. This is mainly due to lower profit in coal companies owing to lower price realisation and higher cost of production, higher interest and depreciation cost due to commissioning of Mundra and Maithon units and reversal of revenues due to change in effective date of MYT regulations in Mumbai.
• On consolidated segment-wise performance for the quarter, revenues from power business has increased by 30 percent at Rs4,824.01 crore as compared to Rs3,720.30 crore in the corresponding quarter last year. Revenue from coal business was up by 14 percent at Rs2,265.04 crore as compared to Rs1,990.69 crore in the corresponding period last year. PBIT from power business was at Rs578.24 crore as against Rs627 crore in the previous quarter last year, a reduction of Rs155 crore, mainly due to shifting of MYT regime to 2012-13 onwards in Mumbai. PBIT from coal business stood at Rs257.61 crore as compared to Rs750.07 crore reported in the corresponding quarter last year. Profits were lower in coal companies due to lower price realisation and higher cost of production. Last year’s PBIT was after capitalisation of Rs210.65 crore of deferred stripping costs. From January 1, 2012, no capitalisation of deferred stripping cost is being done.

Performance highlights Q1 FY13: Standalone

• During the quarter, company’s standalone results reflected a robust financial and operational performance
• Standalone revenue grew to Rs2,284.10 crore, up 19 percent as against Rs1,921.24 crore in Q1 FY12.
• PAT stood at Rs312.30 crore as compared to Rs281.56 crore in corresponding period last year due to strong operational performance inspite of the reversal of revenues due to change in effective date of MYT regulations in Mumbai s impacting profits of Rs155 crore. During the quarter, other income stood at Rs345.59 crore as against Rs247.58 crore in the corresponding quarter last year.

Commenting on the company’s performance, Anil Sardana, managing director, Tata Power, said, “During first quarter of FY13, the company reported revenue growth of about 20 percent and profit growth of about 10 percent which is highly satisfying. All our projects and subsidiaries by and large have performed well. Tata Power’s generation capacity crossed 6000MW with commissioning of 800MW Unit 2 of the Mundra UMPP, reinforcing our position as the largest integrated power company in India. The company crossed 11,000MWh of generation units at Mithapur solar plant, which is a significant milestone that demonstrates efficiency and state-of-the-art technology used at the plant. Our coal companies posted lower realisation due to global economic slowdown and falling coal prices."

"By signing the coal supply agreement with PT Antang Gunung Meratus, we have taken proactive steps to ensure imported coal supply for our upcoming power projects to be developed for next five years,”he added.

Operational highlights

During the quarter under review, the company continued its robust operations. Sales volume for the quarter stood at 4227MUs as compared to 3932MUs in Q1 FY12. The overall generation was 4,259MUs, up 10 percent as compared to 3,889MUs reported in corresponding quarter last year. Trombay Thermal Power Station generated 2,542MUs, as compared to 2,445MUs in the corresponding quarter last year. Hydro power stations generated 389MUs, as compared to 362MUs. Jojobera Thermal Power Station generated 814MUs, as compared to 663MUs and Haldia reported generation of 227MUs as compared to 219MUs in the corresponding quarter last year. Industrial Energy Limited (IEL) reported generation of 457MUs as compared to 399MUs. Wind farms performed well and generated 256MUs as compared to 154MUs in the corresponding quarter last year. Solar plant recorded generation of 1MU, as compared to 1MU in Q1 FY12.

Business highlights: Key subsidiaries

• Coastal Gujarat Power (CGPL): CGPL, an SPV formed for setting up and operating the 4,000MW Mundra UMPP announced synchronisation of its 800MW sized Unit 2 on July 19, 2012 and commercial operations on July 30, 2012. Unit 1 is in operation. Work on Units 3, 4 and 5 of the project is on track and progressing well. Blending of 70 percent has been achieved successfully through eco-coal that has low sulphur and ash content. CGPL posted revenues of Rs285.07 crore in Q1 FY13. PAT stood at Rs164.78 crore and is mainly due to first unit being operational. The unexpected rise in coal price has not only affected the Mundra project, but all imported coal based projects. Senior leaders from the industry met the Prime Minister and requested the PMO to resolve this issue. Further, Tata Power had contracted coal from Indonesia on terms, which were mirror of bid tariff for coal for CGPL. However, since the Indonesian government has changed export norms for coal from their country, Tata Power can’t get imported coal based on contracted terms. CGPL has also filed a petition with CERC for revision of tariff.
• Maithon Power (MPL): The 74:26 joint venture between Tata Power and Damodar Valley Corporation (DVC) commissioned second Unit of 525MW (Unit 2) in Dhanbad, Jharkhand under the requisite standard requirements. Unit 1 of 525MW was commissioned in September 2011. Revenues for Q1 FY13 stood at Rs192.53 crore and PAT stood at Rs17.81 crore.
• Industrial Energy (IEL): The company reported revenues of Rs145.22 crore, increase of 33 percent and PAT of Rs21.29 crore, up 7 percent over last year.
• Tata Power Renewable Energy (TPREL): 25MW solar plant in Mithapur crossed 11,000MWh generation units milestone in record time. Q1 FY13 revenues stood at Rs16.66 crore and PAT was at Rs1.23 crore.
• Tata Power Delhi Distribution : The company’s distribution subsidiary and joint venture with the Delhi government, posted revenues of Rs1,431 crore, up 16 percent as compared to corresponding quarter last year. PAT stood at Rs73.90 crore and is not comparable mainly because in the previous year the Appellate Tribunal of Electricity had upheld certain claims of the company. Consequently, an amount of Rs122.57 crore had been accounted for as revenue during the quarter ended June 30, 2011.
• Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India reported revenues of Rs67.94 crore in Q1 FY13 as compared to Rs69.61 crore in Q1 FY12. PAT stood at Rs26.24 crore, up 3 percent as compared to Q1 FY12.
• Tata Power Trading Company (TPTCL): TPTCL traded a total of 1,615MUs during the quarter, resulting in revenues of Rs644.16 crore, as compared to Rs662.14 in Q1 FY11. PAT stood at Rs5.38 crore, as compared to Rs5.85 crore in Q1 FY12.
• Standard & Poor’s Rating Services (S&P) affirmed its BB- long-term corporate credit rating on Tata Power and BB- issue rating on the company’s senior unsecured notes. At the same time, it revised its outlook on Tata Power to negative from stable.

Growth plans

Tata Power crossed 6,000MW capacity mark. Some of the projects in pipeline are:

Kalinganagar, Orissa 3x67.5MW (gas based) + 3x150MW (coal + gas based): The project is being executed through IEL, a joint venture of the company with Tata Steel. Tata Steel has obtained the environment clearance (EC) for gas based plant along with their steel plant. Civil construction work has commenced and order for major equipments have been placed.

236 MW Dugar Hydro Power Project: Tata Power and SN Power Consortium joint venture won the bid for 236MW Dugar Hydro Power Project in Himachal Pradesh. Pre-feasibility studies are under progress by the joint project team. The project will primarily feed the northern grid.

1,600MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. The rehabilitation and resettlement (R&R) authority of the government of Maharashtra has approved the R&R proposal made by Tata Power. Land acquisition is in progress. Economic options for coal sourcing and logistics are under evaluation.

1,980MW Tiruldih Power Project, Jharkhand: The process of land acquisition for the project is in progress. In-principle clearance has been received from railways for transportation of coal from tubed coal block. The company has successfully extended MoU with government of Jharkhand which is valid for three years.

660MW Naraj Marthapur Project, Orissa: The major clearances for the project have been obtained. The environment clearance has been granted by MoEF, subject to clearance from national board of wildlife for which the process is on. Proposal for using clean technology is also under discussion for this project.

International projects:

Cennergi: Department of energy, government of South Africa announced Cennergi (Tata Power's South African joint venture with Exxaro) as preferred bidder for two wind projects of 234MW Amakhala 139MW and Tsitsikamma 95MW projects.

Tata Power has signed a long term coal supply agreement with PT Antang Gunung Meratus, Indonesia, a 100 percent subsidiary of the Indonesian company PT Baramulti Sukses Sarana (BSSR). In order to secure the coal supplies, the company, through its 100 percent subsidiary Khopoli Investments (Khopoli), has also entered into an agreement which gives Khopoli an option, subject to necessary approvals, to take up to a 26 percent stake in BSSR. AGM and BSSR own approximately 1 billion tonnes of coal resources in south and east Kalimantan in Indonesia.

114 MW Dagachhu Project is being developed in partnership with the Royal Government of Bhutan. Major ordering for the project has been completed and PPA for the entire quantum of power has been signed for the project. The excavation of emergency tunnel and tail race tunnel completed. Invert lining of connection tunnel is in progress. For head race tunnel, more than 55 percent of tunnel excavation completed. Cumulatively around 7km of tunnelling has been completed. More than 99 percent of engineering and 95 percent of manufacturing activities are completed. Currently assembly of generator transformers and erection of EOT crane in power house is in progress. All efforts are being made to commission the unit by 2013.

Geothermal power: Tata Power along with consortium partners Origin Energy and PT Supraco, won 240MW Sorik Marapi Project in Indonesia. The environmental permits were received in May, 2012. Application of forestry permit is in the final stage of approval. The vendor for engineering design and quantity survey contract has mobilised at site and work started. Evaluation of vendors for general civil works is under finalisation. On receipt of the letter of assignment, kickoff meeting for PPA with state power off taker was held in May, 2012.

Awards and recognitions:

• Trombay Thermal Power Station bagged the Gold award in the power sector category awarded by Greentech Foundation for maintaining high standard of workplace safety
• Transmission division bagged the silver award in the power sector category awarded by Greentech Foundation for maintaining high standard of workplace safety
• Jojobera Thermal Power Station was conferred the Golden Peacock Environment Award for 2012
• Haldia plant bagged five INSAAN Awards