OREANDA-NEWS. May 20, 2011. Tata Power, India’s largest integrated private power utility, today, announced the consolidated and stand-alone financial results for the quarter and year ended March 31, 2011.

Key highlights — FY2010-11: Stand-alone

For the financial year ended March 31, 2011, Tata Power reported profit after tax (PAT) of Rs941.49 crore as against Rs938.76 crore for the previous year. Net profit after statutory appropriations increased by Rs22.36 crore (2 per cent) to Rs970.01 crore as against Rs947.65 crore in the previous year. The company’s revenues were at Rs6,599.86 crore as compared to Rs6,893.47 crore in the previous year. This decrease is mainly due to a change in the fuel mix leading to reduction in fuel cost compared to the corresponding period last year. Last year’s revenues included Rs252 crore from an ATE order as onetime item. Dividend recommended up by Rs0.50 per share at Rs12.50 per share as compared to Rs12 per share last year.

During the year, the company’s operations showed a steady performance. The company generated 15,325MUs of power from all its power plants. Trombay thermal power station and hydro-power stations generated 9,530MUs and 1,310MUs of power respectively. Belgaum generated 300MUs, Jojobera thermal power station recorded a generation of 3,078MUs and Haldia reported generation of 760MUs. Power House 6 reported a generation of 738MUs highest so far, and Wind farms generated 347MUs.

Key highlights — FY2010-11: Consolidated

On the consolidated basis, Tata Power’s revenues stood at Rs19,348.21 crore as compared to Rs18,854.76 crore last year. The company’s net profit after tax (PAT) before statutory appropriations was up by Rs92.76 crore (5 per cent) at Rs2,059.60 crore as compared to Rs1,966.84 crore for the last year. Net profit after statutory appropriations increased by Rs112.39 crore (6 per cent) to Rs2,088.12 crore as against Rs1,975.73 crore reported in FY2009-10. Profit before tax (PBT) stood at Rs3,157.47 crore as against Rs2,767.30 crore last year. This year recorded lower forex gains of Rs123 crore from CGPL as compared to Rs358 crore last year and a reversal of deferred tax provision of Rs83 crore in NDPL last year, as it is a recoverable from future tariff.

On a consolidated segment-wise performance, net revenue from power business was Rs12,305.62 crore as compared to Rs12,550.05 crore and from coal business Rs6,400.47 crore as compared to Rs5,620.95 crore last year. Profit before interest and tax (PBIT) from power business was Rs1,942.94 crore as against Rs2,076.36 crore. The decrease was mainly due to low merchant rate realisation. Further, last year’s revenues included Rs252 crore from an ATE order as onetime item. PBIT from coal business was up by 67 per cent at Rs1,673.13 crore as compared to Rs999.20 crore reported in the corresponding period last year due to higher realisation. Last year’s coal segment results also included a onetime write-off of Rs. 318 crores deferred stripping cost relating to prior years.

Key highlights — Q4 FY2010-11: Stand-alone

During the quarter, the company’s stand-alone results reflected a stable financial and operational performance. Revenues stood at Rs1,630.22 crore as compared to Rs1,717.80 crore. Profit after tax (PAT) increased by 16 per cent to Rs267.71 crore as against Rs230.60 crore registered in the corresponding quarter last year. Sales volume for the quarter increased by 1 per cent to 3,777MUs as against 3,745MUs in the corresponding quarter last year.

Key highlights — Q4 FY2010-11: Consolidated

On the consolidated basis, Tata Power’s revenues stood at Rs4,985.84 crore as compared to Rs4,789.60 crore in the corresponding period last year. The company’s net profit after statutory appropriations stood at Rs661.54 crore as against Rs942.78 crore reported in the corresponding period last year. Net profit after tax (PAT) before statutory appropriations stood at Rs625.02 crore as compared to Rs946.78 crore for the corresponding period last year. This decrease is mainly due to lower forex gains of Rs61 crore from CGPL as compared to Rs358 crore last year and a reversal of deferred tax provision of Rs83 crore in NDPL last year, as it is a recoverable from future tariff. Profit before tax (PBT) stood at Rs843.56 crore as against Rs1,103.92 crore in the corresponding period last year.

On a consolidated segment-wise performance, net revenue from power business was up by 3 per cent at Rs3,196.86 crore as compared to Rs3,099.11 crore and from coal business up by 14 per cent at Rs1,714.18 crore as compared to Rs1,508.77 crore in the corresponding periods last year. Profit before interest and tax (PBIT) from power business was up at Rs552.67 crore as against Rs537.54 crore in the previous year. Whereas, PBIT from coal business was at Rs454.29 crore as compared to Rs394.82 crore reported in the corresponding period last year.

Commenting on the company’s performance, Anil Sardana, managing director, Tata Power, said: “We are happy to post a steady performance, year on year with all our business divisions performing well. The operations continue to be stable and the new projects under implementation are progressing well. The company now moves into the most interesting phase of its business with new capacity additions through our large projects — Maithon and Mundra UMPP — that are nearing commissioning. The recent commissioning of the solar plant in Mulshi and the additions in wind energy further reiterates our commitment towards reducing carbon foot print and strengthening our renewable portfolio.”

OPERATIONAL AND BUSINESS HIGHLIGHTS:

Mumbai retail business:

Retail customer base in Mumbai crossed the 1.5 lakh mark in March 2011. As on March 31, 2011, customer base was 1,61,183 (34,323 direct customers and 1,26,860 changeover customers). Tata Power became the first power company to launch a multi-lingual customer portal in three languages ie, English, Hindi and Marathi for its customers in Mumbai. A Bill Calculator for residential customers was also launched with web portal. Mobile collection van was launched for facilitating cash payments by customers. The company also instituted a “Master Customer Care Centre” at Saki-Vihar Road, opposite Saki Vihar Telephone Exchange in Andheri (East), Mumbai. Overall, there are 10 customer care and bill collection centres located across suburban Mumbai.

North Delhi Power (NDPL): The company’s distribution subsidiary and joint venture with Delhi Government, NDPL posted revenues of Rs3,988.11 crore for the year ended March 2011, as compared to Rs3,297.39 crore registered in the corresponding period of the previous year. The profit after tax decreased to Rs258.18 crore as against Rs350.73 crore in the previous period last year due to deferred tax reversal done last year.

Powerlinks Transmission (Powerlinks): Powerlinks, the first public-private joint venture in power transmission in India has earned revenues of Rs288.41 crore in FY2010-11 as against Rs300.98 crore in the previous year. The profit after tax stood at Rs105.68 crore from Rs108.09 crore.

Tata Power Trading Company (TPTCL): TPTCL traded a total of 4,354MUs as compared to 4,075MUs in the same period of the previous year. The revenues stood at Rs1,933.12 crore in FY2010-11 as against Rs2,275.78 crore in the previous year. The profit after tax was at Rs9.15 crore as against Rs8.24 crore in the previous year, up by 11 per cent.

Strategic Electronics Division (SED): was awarded the prestigious order to modernise the airfield infrastructure of Indian Air Force (IAF) by the Ministry of Defence (MoD). The programme, known as Modernisation of Airfield Infrastructure – Phase I (MAFI-I), is of strategic importance and aims to improve capability of the airfields to handle the modern combat air fleet being inducted by IAF.

Trust Energy Resources: Tata Power through its wholly-owned subsidiary Trust Energy Resources (Trust Energy) in Singapore christened its first Cape Vessel, ‘Trust Agility’ a modern 181,000DWT in Jinhae, Korea, at the world-famous STX shipyard. The ship will be delivered on May 20, 2011 and has the latest environmentally friendly technologies.

Hybrid capital offering issue of USD 450 million: Tata Power raised USD 450 million 60-year (non-callable for 5 years) hybrid capital securities offering through its wholly-owned subsidiary Bhira Investments priced in April 2011, at 8.5 per cent per annum, payable semi-annually. Deutsche Bank, Goldman Sachs and UBS are the appointed joint bookrunners for the issue. The proceeds of the issue of the securities will be applied to fund future acquisition activities and to repay an outstanding loan.

Sub-division of shares: In order to improve the liquidity of the company’s shares in the stock market and to make it affordable to the small investors, the board of directors of the company considered it desirable to recommend sub-division of one equity share of Rs10 each into ten equity shares of Re1 each subject to approval of the members and such other authorities as may be necessary.

GROWTH PLANS:

The progress on the company’s upcoming projects is as follows:

4000MW, Mundra Ultra Mega Power Project (UMPP): The Mundra UMPP is progressing as per schedule with engineering, procurement and construction activities in full swing. Unit 1 - Turbine generator (TG) was put on barring gear in February 2011. Boiler light up was done in March, and steam blowing of steam lines also commenced in March. Unit 2 - Equipment and piping erection is in progress. Unit 3 – Boiler hydro test was completed in March, 2011, and balance equipment erection and testing is going on. Erection of boiler pressure parts for Units 4 and 5 is progressing well. Unit 5 TG deck has been cast in March 2011. Unit 4 and 5 TG buildings major structural erection has been completed and sheeting work is in progress. The first unit will be ready for commissioning by September 2011.

1050MW Maithon Project: Unit 1 boiler light up has been completed and Unit 1 was synchronised with oil, and coal synchronisation is in progress. Unit 1 is scheduled for commissioning by end of Q1FY12.

Unit 5, Jojobera 120MW (1 x 120MW): Commercial operation date (COD) for the unit was declared in March, 2011. It generated 9.46MUs during fourth quarter.

114MW Dagachhu Project: in partnership with The Royal Government of Bhutan (RGoB) is progressing well. Major ordering for the project has been completed. All statutory clearances, land, water and environment clearances have been received and PPA for the entire quantum of power has been signed for the project. Civil works are in progress. Diversion of Dagachhu river for weir construction has been completed and weir foundation is ready for concreting. Concreting of the desilter is in progress. Work for head race tunnel, power house access tunnel, etc, is in progress and cumulatively, 3.12km of tunneling has been completed. The first unit is targeted to be commissioned by March 2013.

Partnership with SN Power: The company has signed an exclusive partnership agreement with SN Power, Norway, to set up joint ventures for developing hydro power projects in India and Nepal. The Tata Power and SN Power consortium bagged the “Dugar Hydro Electric Project” in Chenab Valley in Himachal Pradesh, India. The capacity for Dugar Hydro Electric Project is estimated to be approximately 236MW and will be developed through a special purpose vehicle (SPV) being formed and owned by the consortium.

1,600MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. Disbursement of compensation to land owners is in progress by Raigad district authorities and 54 per cent of private land (536 acres of 993 acres) has been covered till date. Activities pertaining to site enabling works have been identified and are being addressed.

660MW Naraj Marthapur, Orissa: The Environment Clearance has been recommended by MoEF, subject to clearance from National Board of Wild Life (NBWL) for which the process is on. All the balance clearances for the project have been obtained. Land acquisition is currently in progress. The company has been allotted the Mandakini coal block located in the Angul district of Orissa, along with Monnet Ispat and Energy, and Jindal Photo, which will feed coal to the plant.

Tiruldih Power Project, Jharkhand (3 X 660MW): 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. Tubed Coal Block has been jointly allotted to Tata Power and Hindalco in Jharkhand.

Satpura CBM Block: Tata Power along with its consortium partner Arrow Energy has been awarded the Satpura CBM block in Madhya Pradesh during the CBM IV bidding round. The Tata Power-Arrow Energy consortium has been awarded the Satpura CBM block in Madhya Pradesh.

RENEWABLE PROJECTS:

Wind Power: Tata Power is the leading private wind generation companies with an installed capacity of 273MW and plants spread across four states Maharashtra, Gujarat, Tamil Nadu and Karnataka, the leading states in promoting wind power generation in India. The company had placed an order for 150MW additional wind capacity to be set up in Maharashtra and Tamil Nadu of which 45MW was commissioned in April 2011 and the balance is expected to be commissioned till December 2011.

Solar Power: The commercial operation (COD) of the 3MW, photovoltaic (PV) based grid-connected solar power plant at Mulshi, Maharashtra, was achieved in March 2011. This is the first and largest solar photovoltaic (PV) power plant in the state of Maharashtra and one of the largest in the country. During the year, the company has signed a PPA with Gujarat Urja Vikas Nigam to develop a 25MW solar photovoltaic project at Mithapur in Gujarat.

Geothermal Power: Tata Power led consortium comprising Tata Power (47.50 per cent), Origin Energy (47.50 per cent) and PT Supraco Indonesia (5 per cent) successful won the bid for the Sorik Marapi geothermal project in Northern Sumatra, Indonesia. The Sorik Marapi project is estimated to support the development of approximately 240MW of geothermal generation capacity.

SUSTAINABILITY INITIATIVES:

Tata Power Energy Club (TPEC):

In FY2010-11, the club reached out to 285 schools nationwide, sensitised 1,178,061 citizens across India and saved 2,417,952 million units. The club won several accolades such as “Gold” from ABCI in environmental communication category; ranked number 2, out of the 22 entries for the earth care category of Siemens Ecovative Award 2010 and was bestowed with the ‘Most Innovative Campaign’ award by The Energy Daily’s 2010 Leadership Awards, USA.

My Mumbai, Green Mumbai! DSM Initiative: To drive energy efficiency, the company has introduced a unique consumer initiative called “My Mumbai Green Mumbai”. This initiative helps to make Mumbai customers energy-efficient by giving them an opportunity to exchange their inefficient electrical appliances for energy-efficient appliances. The MERC-approved initiative has five programmes that offer large discounts on energy-efficient products. The company has partnered with leading consumer appliance manufacturers for energy efficient equipments such as Havell’s India for ceiling fans, Osram, a Siemens company, for T5 tube lights and Carrier India for air conditioners (ACs) etc.

AWARDS AND RECOGNITIONS:

Greentech Foundation awarded Tata Power with a most admired top honour ‘Gold’ for its Trombay thermal power station in the thermal power category at the 10th Annual Greentech Safety Award 2011.

Tata Power was conferred with the prestigious BML Munjal Award for Excellence in Learning and Development for the year 2011. The acclaimed Munjal awards honours the industry’s finest organisations which have made significant contribution in the area of Human Capital Development.