May 19, 2017

Tata Power announces financial results for fourth quarter FY2016-17

  • 10 percent underlying growth in EBITDA;
  • Renewable business reports Rs175 crore of profit after tax (PAT) and 2,000 MW capacity mark, and added 1,427 MW of capacity in FY17;
  • Board recommends dividend of Rs1.30 per share

 

  • FY17 consolidated PAT was up at Rs1,397 crore (before impact of Tata Teleservices buy back from Docomo), mainly due to strong performance by coal companies, Indian subsidiaries and renewables business. Provision of Rs651 crore was made pursuant to Docomo arbitration award. (As per INDAS JVs & Associates are consolidated at PAT level).
  • The underlying EBITDA including JV companies (before share buyback impact from Docomo & one off tax impact) increased by 10 percent at Rs8,603 crore.
  • FY17Q4 consolidated PAT stood at Rs389 crore (before share buyback impact from Docomo) as against Rs22 crore in the same period last year.
  • CGPL fuel under recovery for the quarter and full year significantly offset by gains in coal mine as well as MTM gains on forex liabilities.
  • Tata Power standalone Q4 PAT stood at Rs58 crore (before share buyback impact from Docomo).
  • FY17 consolidated revenue* stood at Rs27,288 crore, FY17Q4 consolidated revenue* stood at Rs6,984 crore and standalone revenue* for Q4FY17 stood at Rs1,950 crore.

Editorial Synopsis:

Key financial highlights: FY17 v/s FY16

  • Dividend recommended by Board at Rs1.30 per share, same as last year.
  • Consolidated PAT stood at Rs1,397 crore (before share buyback impact from DOCOMO of Rs651 crore) as compared to Rs662 crore.
  • Tata Power’s FY17 revenue* stood at Rs27,288 crore as compared to Rs28,526 crore last year.
  • Standalone PAT was at Rs935 crore (before share buyback impact from Docomo of Rs651 crore) as compared to Rs1,355 crore.

Key financial highlights: Q4 FY17 v/s Q4 FY16

  • Consolidated PAT stood at Rs389 crore (before share buyback impact from Docomo of Rs651 crore) as compared to Rs22 crore in the corresponding quarter last year.
  • Consolidated revenue* stood at Rs6,984 crore as compared to Rs7,574 crore in the corresponding quarter last year.
  • PAT stood at Rs58 crore (before share buyback impact from Docomo impact of Rs651 crore) as compared to Rs371 crore in the corresponding period last year mainly due to higher interest and finance cost in the current year and one-off tax adjustment in the previous year.
  • Standalone revenue* stood at Rs1,950 crore as compared to Rs2,019 crore in the corresponding period last year.

Key business and growth highlights:

  • Clean Energy portfolio crossed the 3,000 mark and stood at 3,141 MW.
  • Tata Power’s arm Tata Power Renewable Energy Limited has completed the acquisition of Welspun Renewables Energy Private Limited (WREPL) which has 1,140 MW of renewable power projects.
  • Tata Power Delhi Distribution (TPDDL) achieved a benchmark reduction in AT&C losses at 8.59 percent as against 8.88 percent for the same period last year.
  • 187 MW hydro in Georgia is ready for commissioning.
  • Tata Power's South African JV, Cennergi, has started commercial operations of both the wind farms totalling 230 MW.
  • In 2016, Tata Power's consumer base crossed the two million mark across the country.
  • Tata Power's generation crosses 52,000 MUs for the first time in FY17.
  • Tata Power's wholly owned subsidiary, Tata Power International Pte, and ICICI Venture created a platform company to facilitate investment in power projects in India
  • Tata Power launched a universal mobile application for all its stakeholders along with employees and consumers of Mumbai and Delhi.
  • The Javelin™ JV team, a partnership between Raytheon Company and Lockheed Martin, signed a letter of intent (LOI) with Tata Power through the Strategic Engineering Division (SED), to explore co-development and production of the Javelin anti-armour missile system.
  • Following the Supreme Court's order on the Mundra UMPP case, CGPL has intensified its efforts to contain costs by alternate sourcing of coal and other initiatives to reduce cost.
  • In April 2017, the company won the bid for Distribution Franchisee of Ajmer Circle and formed a Special Purpose Company, TP Ajmer Distribution Limited, and has signed the distribution franchisee agreement with Ajmer Vidyut Vitran Nigam to cater to the power requirements of customers in Ajmer, for a period of 20 years.
  • IEL 62.5X2 MW units for Tata Steel Kalinganagar achieved full load operations.

National: Tata Power, India’s largest integrated power company, today announced its results for the quarter ended March 31, 2017.

Performance highlights: Consolidated

  • On a consolidated basis, Tata Power’s FY17 Revenue* stood at Rs27,288 crore as compared to Rs28,526 crore last year, mainly due to lower fuel and power cost and one-off items.
  • PAT was up at Rs1,397 crore (before Docomo impact of Rs651 crore) as compared to Rs662 crore in FY16, mainly due to higher contributions by the coal mines in H2FY17, renewables business and associates and MTM fain on forex and IRS contracts in CGPL.
  • Renewable business crosses Rs175 crore of PAT and 2,000 MW capacity mark. During the year, the company added 1,350 MW of renewable capacity largely through the Welspun acquisition.
  • During the quarter ended March 31, 2017, Tata Power’s consolidated revenue* stood at Rs6,984 crore as compared to Rs7,574 crore in the corresponding quarter last year due to lower power purchase and fuel cost.
  • Operating profit for the quarter stood at Rs1,164 crore as compared to Rs1,648 crore in Q4FY16, mainly due to CGPL's under recovery and one-off tax impact in TPDDL (this does not affect PAT).
  • However, this was offset by an excellent performance by coal companies.
    The company’s PAT for the quarter was up at Rs389 crore (before Docomo impact of Rs651 crore) as against Rs22 crore reported in the corresponding quarter last year, mainly due to coal companies and renewables business.

Performance highlights: Standalone

  • For the financial year ended March 31, 2017, revenue* stood at Rs7,282 crore as compared to Rs8,316 crore last year, mainly due lower power purchase and fuel cost.
  • PAT down by 31 percent to Rs935 crore (before Docomo impact of Rs651 crore) as against Rs1,355 crore in the corresponding period last year, mainly due to favourable regulatory orders, higher carrying cost in previous year and higher finance cost in the current year. However, operating profits continue to be strong.
  • For the quarter ended March 31, 2017, standalone revenue* was down by 3 percent to Rs1,950 crore as against Rs2,019 crore.
  • Profit from operation was down by 8 percent to Rs521 crore (before Docomo impact of Rs651 crore) as against Rs564 crore due to lower contribution from Mumbai Operation.
  • PAT was down by 84 percent to Rs58 crore (before Docomo impact of Rs651 crore) as compared to Rs371 crore in the corresponding period last year, mainly due to higher finance cost in the current year, deemed interest from CGPL and excess tax provision reversal in the previous year.

Commenting on the company’s performance, Anil Sardana, CEO and MD, Tata Power, said, “Despite the sector challenges, the Company has registered a strong 10 percent growth in consolidated underlying EBITDA at Rs8,603 crore. The company’s relentless focus on operational improvements have shown great results. All our subsidiaries and plants have shown strong performance despite challenging circumstances. We have grown our footprint and added 1,427 MW through various projects nationally and internationally. Renewables continue to be one of our key focus areas, as is evident in our recent acquisition of solar assets. The renewable energy business made a healthy contribution to PAT this year. The company aims to pursue a well-charted growth strategy by demonstrating a high level of commitment towards cleaner sources of generation, thus increasing the share of non-fossil fuel-based generation output to 35–40 percent by 2025.”

Operational highlights:
The company continued its robust operations. Standalone generation for the quarter stood at 12,227 MUs. Mundra reported generation of 27,460 MUs. Maithon plant reported 7,357 MUs. Trombay thermal power station generated 6,394 MUs. Jojobera thermal power station generated 2,833 MUs and Haldia reported generation of 779 MUs. Industrial Energy (IEL) reported generation of 2,457 MUs, TPREL generated 556 MUs through clean sources of energy (solar and wind) and WREPL generated 884 MUs.

Awards and Recognition:

  • Tata Power's corporate centre, Carnac building awarded IGBC gold rating, under IGBC's Green Existing Buildings category.
  • Club Enerji and Greenolution was presented at IIM, Ahmedabad, in February 2017 in a TEDx IIM Ahmedabad event held on the topic driving conservation by shaping the future generations under Renaissance 2.0: Inspiring a better tomorrow. View the event at https://www.youtube.com/watch?v=1AIm_ExWgVw&t=13s.
  • Tata Power's quality circle teams win Gold award at International Convention on Quality Control Circles 2016.
  • CII awards Maithon Power Plant for its excellence in operation management and people management.
  • Tata Power honoured with SAP ACE Award 2016.
  • Tata Power's Maithon power plant awarded with Global Energy Management Award 2017.
  • Tata Power's TPSDI conferred for capacity building and training at the Central Board of Irrigation & Power (CBIP) Awards 2017.

Tata Power’s financial results for the quarter and year ended March 31, 2017.