• Tata Power group’s FY2011-12 consolidated revenue crosses Rs25,000 crore. Revenue up by 34 percent at Rs25,868.87 crore due to strong operational fundamentals; Operating profit also up by 16 percent at Rs5,325.27 crore
• Profit After Tax (PAT) includes provisions of Rs1,800 crore of impairment for Mundra project and Rs659.44 crore of deferred stripping costs. Thus, with these Rs2,460 crore of provisions, PAT stood at negative Rs1,087.68 crore.
• Q4 consolidated revenue up by 44 percent at Rs7,169.85 crore, PAT stood at Rs(628.75) crore, mainly due to Rs815 crore of provision made for impairment for Mundra project
• FY2011-12 stand-alone revenue up by 22 percent at Rs8,051.53 crore and PAT up by 24 percent at Rs1,169.73 crore due to strong operational performance of power business and higher dividend income from coal SPVs.
• Q4 stand-alone revenue up by 34 percent at Rs2,184.02 crore, PAT stood at Rs116.97 crore, reduction due to forex losses.
• Board maintained dividend at Rs1.25 per share of Re1 each.

Mumbai: Tata Power, India’s largest integrated power company today announced its results for the financial year ended March 31, 2012.

PERFORMANCE HIGHLIGHTS FY2011-12: CONSOLIDATED

• On the consolidated basis, Tata Power group’s financial year revenue was up by 34 percent to Rs25,868.87 crore as compared to Rs19,348.21 crore last year due to strong operational performance and higher coal price realisations. PAT includes provisions of Rs1,800 crore of impairment for Mundra project and Rs659.44 crore of deferred stripping costs. Thus, with these Rs2,460 crore of provisions PAT stood at (1,087.68) crore as against Rs2,059.60 crore reported in FY2010-11.

• Based on assessment of fuel, forex and other operating costs on cash flows for the Mundra project, a total provision of Rs1,800 crore has been made as impairment loss for the year. Given the volatility of coal prices and forex, the assumptions will be monitored on a periodic basis and necessary adjustments will be made if external conditions relating to the assumptions indicate that such adjustments are appropriate.

• In line with the notification dated December 29, 2011, issued by the Ministry of Corporate Affairs, the company has selected the option given in paragraph 46A of the Accounting Standard (AS) -11 “The Effects of Changes in Foreign Exchange Rates”.

• On a consolidated financial year segment-wise performance, net revenue from power business was up by 31 percent at Rs16,169.59 crore as compared to Rs12,305.62 crore and from coal business was up by 44 percent at Rs9,196.52 crore as compared to Rs6,400.47 crore last year. Profit before Interest and Tax (PBIT) from power business was Rs2,159.75 crore as against Rs1,942.94 crore and PBIT from coal business was at Rs1,988.05 crore as compared to Rs1,673.13 crore reported last year.

• During the quarter ended March 31, 2012, Tata Power’s consolidated revenue was up by 44 percent at Rs7,169.85 crore as compared to Rs4,985.84 crore in the corresponding quarter last year. The company’s PAT stood at Rs(628.75) crore as against Rs625.02 crore reported in the corresponding quarter last year mainly due to additional provision made for impairment of Rs815 crore for Mundra project. The impairment is mainly on account of forex losses incurred due to rupee depreciation.

• In consolidated segment-wise performance for the quarter, net revenue from power business was up by 44 percent at  Rs4,605.01 crore as compared to Rs3,196.86 crore and from coal business up by 36 percent at Rs2,337.83 crore as compared to Rs1714.18 crore in the corresponding period last year. PBIT from power business was up at Rs588.68 crore as against Rs552.67 crore in the previous year. Whereas, PBIT from coal business was at Rs506.47 crore as compared to Rs454.29 crore reported in the corresponding period last year. 

PERFORMANCE HIGHLIGHTS FY12: STAND-ALONE

• For the financial year ended March 31, 2012, the company’s stand-alone results reflected a strong operational performance. The company’s revenue grew by 22 percent to touch Rs8,051.53 crore as compared to Rs6,599.36 crore last year. PBT was up 51 percent at Rs1,682.87 crore as compared to Rs1,111.82 crore last year. The company generated 15,230MUs of power from all its power plants and sales stood at 15240MUs. Other income was higher by 99 percent at Rs983.46 crore as compared to Rs493.58 crore due to dividends from coal SPVs, forex gains (due to impact of AS-11) and treasury income. PAT increased by 24 percent to Rs1,169.73 crore as against Rs941.49 crore last year due to improved operational performance of both power and coal business.

• For the quarter ended March 31, 2012, standalone revenue grew to Rs2,184.02 crore, up 34 percent as against Rs1,630.22 crore in Q4 FY2010-11. During the quarter, the company’s PAT stood at Rs116.97 crore as compared to Rs267.71 crore mainly due to forex losses. Other income for the quarter was  lower at Rs(6.88) crore. 

BUSINESS HIGHLIGHTS: KEY SUBSIDIARIES

• Coastal Gujarat Power (CGPL): CGPL, an SPV formed for setting up and operating the 4,000MW Mundra UMPP, declared commercial operation on March 9, 2012, of Unit 1, the country’s first 800MW-sized super-critical unit. Unit 2 is scheduled for commissioning by August 2012. Work on Units 3, 4 and 5 of the project is on track and progressing well. CGPL posted revenues of Rs8.05 crore in Q4FY2011-12. PAT stood at Rs(1,011.86) crore and is mainly due to impairment of Rs815 crore as explained earlier. CGPL has also commenced trials of blending low coal grade imported coal; initial reports have been encouraging and suggest that 50 percent blending is possible.

• Maithon Power (MPL): The 74:26 joint venture between Tata Power and Damodar Valley Corporation commissioned the first unit of 525MW (Unit 1) in September 2011. The second unit has been successfully synchronised and will be commissioned by Q1FY2012-13. Revenues for the year stood at Rs369.70 crore and PAT stood at Rs(174.14) crore. Revenues for Q4FY2011-12 stood at Rs241.35 crore and PAT stood at Rs1.29 crores.The unit has stabilised and, with assured fuel supply, will show improved performance going forward.

• Industrial Energy (IEL): The company reported revenues of Rs433.71 crore, increase of 246 percent and PAT of Rs78.01 crore, up by 313 percent over last year. Increase in PAT in IEL is mainly since Unit 5 was not operational in previous year.  

• Tata Power Renewable Energy (TPREL): 25MW solar project was successfully commissioned and commercial operation declaration (COD) achieved on January 25, 2012, within the approved budget and stringent timelines meeting the contractual commitments to the Government of Gujarat. The plant is performing well without any interruption since COD. The plant has generated cumulative of 9,167MWH as on March 31, 2012, posted revenues of Rs13.69 crore and PAT of Rs0.96 crore.

• Tata Power Delhi Distribution: The company’s distribution subsidiary and joint venture with Delhi Government, posted revenues of Rs5,194.68 crore up 30 percent as compared to FY2010-11. The PAT stood at Rs338.65 crore, up by 31 percent as compared to Rs258.18 crore last year.  

• Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India, has earned revenues of Rs281.63 crore in FY2011-12, down by 2 percent as compared to FY2010-11. The PAT stood at Rs 112.35 crore, up by 7 percent as compared to last financial year.

• Tata Power Trading Company (TPTCL): TPTCL traded a total of 5,583MUs during the year, resulting in revenues of Rs1,926.70 crore, decrease of 0.3 percent as compared to FY2010-11. PAT stood at Rs14.05 crore, up by 54 percent as compared to last financial year.

Anil Sardana, managing director, Tata Power, said, “During the financial year, all our businesses have registered robust performance. The company crossed a historic milestone of 5,000MW of power generation capacity, reaffirming its position as the largest integrated power company in India. During this period, we commissioned several large projects — Unit 1 of India’s first UMPP in Mundra, Unit 1 of 1,050MW Maithon Power Project, and 25MW solar plant at Mithapur.

"Tata Power’s global footprint has been further augmented through its JV with Exxaro to explore electricity generation opportunities across South Africa, Botswana and Namibia. We are also pleased to share that Cennergi has been announced as preferred bidder for two wind projects of 234MW — Amakhala 139MW and Tsitsikamma 95MW.

"We look forward to early resolution on imported coal compensation issue for long-term sustenance of power sector. The annual consolidated results reflect non-cash impairment provision for Mundra project and deferred stripping costs. We believe it’s prudent to make such provisions.”

GROWTH PLANS
Tata Power crossed 5,000MW capacity mark, re-affirming its position as the largest integrated power company in India. Some of the projects in pipeline are:

• 236MW Dugar Hydro Power Project: Tata Power – SN Power Consortium JV won the bid for 236MW Dugar Hydro Power Project in Himachal Pradesh. The project team has carried out route survey, geological mapping and contour mapping of the project site. Currently, the project is being optimised for 500MW.

• Kalinganagar, Orissa 3x67.5MW (gas-based) + 3x150MW (coal- and gas-based): The project is being executed through Industrial Energy, a JV of the company with Tata Steel. Tata Steel has obtained Environment Clearance (EC) for gas-based plant along with their steel plant. Water allocation has also been obtained. Process has been initiated for obtaining coal linkage, water allocation, EC, etc for coal-based plant.

• 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.

International projects:

• Cennergi: The company has formed a JV with Exxaro, a South African mining company, to look for electricity-generating opportunities with focus on the investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of power generation projects across South Africa, Botswana and Namibia. Department of Energy, Government of South Africa, announced Cennergi as preferred bidder for two wind projects of 234MW — Amakhala 139MW and Tsitsikamma 95MW. The projects were submitted under the second window of the Request for Bids for the Independent Power Producers Programme (RFP).
  
  The 114MW Dagachhu project is being developed in partnership with The Royal Government of Bhutan (RGoB). Major ordering for the project has been completed and PPA for the entire quantum of power has been signed for the project. Given the geological conditions, the project is facing some delay but all efforts are being made to commission the unit by 2013.

• Geothermal power: A Tata Power-led consortium along with Origin Energy, Australia; and PT Supraco, Indonesia; won the 240MW Sorik Marapi project. Exploratory drilling is expected to commence in Q4 FY2012-13.