OREANDA-NEWS. Tata Power, India's largest integrated power company today announced its results for the quarter ended September 30th, 2014.

Performance Highlights Q2 FY15: Consolidated

On the Consolidated basis, Tata Power's Q2 FY15 Revenues stood at Rs.8394 crore as compared to Rs.8765 crore in corresponding quarter last year mainly due to lower realisation by coal companies, and lower fuel cost in Mumbai Operations.

Profit from Operations stood at Rs.1156 crore mainly due to lower sales realisation from coal companies and lower contribution from Trombay Unit 8. However all operations continue to perform well.

PAT stood at Rs.(78) crore as compared to Rs.75 crore in Q2 FY14 mainly due to lower coal prices impacting profitability of coal mines.. All other operations have performed well. The Company has also made provision for certain expenses pertaining to coal mines following deallocation of coal mines by Hon'ble Supreme Court.

On consolidated Segment-wise performance for the quarter, Revenues from Power stood at Rs. 6201 crore as compared to Rs. 6393 crore in the corresponding quarter last year, due to lower fuel cost due to lower generation and lower volume traded by TPTCL.

Segment result of Power was up at Rs.994 crore as compared to Rs.884 crore in the corresponding quarter, due to lower depreciation charge in CGPL.

Revenue from Coal Business stood at Rs.2079 crore as compared to Rs.2324 crore in the corresponding period last year. Segment results from coal business stood at Rs. 159 crore as compared to Rs.215 crore due to lower price realisation from coal companies despite higher volumes sold. Despite falling global coal prices, losses in coal companies have been minimized by prudent cost control measures.

Performance Highlights Q2 FY15: Standalone

Standalone Revenues stood at Rs.2035 crore as against Rs.2200 crore in Q2 FY14 mainly due to Trombay Unit 8 which is under restoration. The Unit 8 is likely to continue operations shortly.

Profit from operations stood at Rs.391 crore as compared to Rs.463 crore in the corresponding quarter last year mainly because current year lower contribution from Trombay Unit 8 which is under restoration coupled with better performance from Haldia partly offset by provision for diminishing in the value of Investment on account of de-allocation of coal Mines.

PAT stood at Rs.306 crore as compared to Rs.262 crore in corresponding quarter last year as higher Investment & Treasury income mainly contributed by Dividend & Interest income from Subsidiaries.

Performance Highlights H1 FY15: Consolidated

On a consolidated basis, Tata Power's H1 FY15 Revenues stood at Rs. 17160 crore as compared to Rs. 18104 crore in corresponding period last year on account of lower revenue in Coal companies , lower fuel cost in Mumbai operations coupled with lower volume traded in TPTCL.

Profit from operations stood at Rs. 2388 crore as compared to Rs. 2759 crore in corresponding period last year mainly due to lower profitability from coal mines and lower contribution from Trombay Unit 8 which is under restoration. The operational performance at Mundra and Maithon continues to be robust.

PAT stood at Rs. (189) crore as compared to Rs. (40) crore in the same period last year mainly due to lower profits from coal mines and provisions related to deallocation of mines.

On consolidated Segment-wise performance, Revenues from Power business stood at Rs. 12717 crore as compared to Rs.13322 crore in corresponding period last year. Coal Business stood at Rs. 4170 crore as compared to Rs. 4711 crore in the corresponding period last year. Segment result from Power Business was at Rs.1949 crore as against Rs.1908 crore and PBIT from Coal Business stood at Rs.420 crore as compared to Rs. 576 crore.

Performance Highlights H1 FY15: Standalone

Standalone Revenue stood at Rs.4363 crore, as against Rs. 4807 crore in the same period last year.

Profit from operations stood at Rs.798 crore mainly due to lower contribution from Trombay Unit 8 which is under restoration. Current year also includes high income from treasury. This is not comparable with Rs.1070 crore reported in the corresponding period last year as previous year included favourable MYT order of Rs. 115 crore.

PAT stood at Rs.563 crore as compared to Rs.619 crore in the corresponding period last year.

Commenting on the Company's performance, Mr. Anil Sardana, CEO & Managing Director, Tata Power said, "During the second quarter of FY15, the Company reported robust operational performance by its businesses maximizing shareholder value.

In this quarter, we have successfully received the distribution and transmission license for Mumbai for the next 25 years. This would help us to continue to empower the Mumbaikars with their 'Right to choose' the best service provider while helping us set consumer service and cost efficiency benchmarks in the power distribution business. We are working on additional roll-out plan for customer acquisition across Mumbai.

Our subsidiary CGPL continues to do its utmost to honour our commitment towards the nation's energy security agenda by providing reliable & competitive power supply. We await and are hopeful of a quick resolution of India's fuel issues including the unprecedented rise of imported coal prices and issues around domestic coal. Over the past 100 years, we have stood the test of providing reliable, uninterrupted power supply on 24x7 basis to Mumbai and would continue to strive to provide competitive services."

Operational Highlights:

The Company continued its robust operations and performed well despite a volatile macro environment. Consolidated Generation for the quarter stood at 10,946 MUs. Mundra reported generation of 5722 MUs as compared to 5425 MUs in corresponding quarter last year. Maithon plant reported 1577 MUs as compared to 1211 MUs. Trombay Thermal Power Station generated 1416 MUs while Hydro Power Stations generated 398 MUs. Wind Farms generated 282 MUs .Jojobera Thermal Power Station generated 818 MUs and Haldia reported generation of 209 MUs. Industrial Energy Limited reported generation of 468 MUs and. TPREL generated 55 MUs. Solar plants recorded generation of 1 MU.

Business Highlights: Key Subsidiaries

Coastal Gujarat Power Limited (CGPL): CGPL posted Revenues of Rs. 1263 crore as compared to Rs. 1389 crore in Q2 FY14. PAT of CGPL was improved by 8% at Rs. (274) crore as compared to Rs. (297) crore in the corresponding quarter last year, mainly on account Lower Fuel Cost & better Heat Rate/Auxiliary consumption.

Maithon Power Limited (MPL): The 74:26 Joint Venture Company between Tata Power and Damodar Valley Corporation reported Revenue of Rs. 534 crore as compared to Rs 485 crore in Q2 FY14. PAT stood at Rs. 28 crore as compared to Rs. 12 crore in Q2 FY14.

Industrial Energy Limited (IEL): The Company reported Revenues of Rs. 132 crore compared to Rs. 125 crore in Q2 FY14, up by 6% and PAT stood at Rs. 17 crore as compared to Rs. 24 crore in Q2 FY14 due to higher tax provisions.

Tata Power Renewable Energy Limited (TPREL): Q2 FY15 Revenues stood at Rs. 31 crore compared to Rs. 18 crore in Q2 FY14, up by 72% and PAT stood at Rs. (4) crore.

Tata Power Delhi Distribution Limited (TPDDL): TPDDL, the Company's distribution subsidiary and Joint Venture with Delhi Government, posted revenues of Rs. 1787 crore as compared to Rs. 1560 crore in corresponding quarter last year, up by 15%. PAT stood at Rs. 68 crore as compared to Rs. 70 crore in Q2FY14.

Powerlinks Transmission Limited (Powerlinks): Powerlinks, the first public-private Joint-Venture in power transmission in India reported Revenues of Rs. 60 crore as compared to Rs. 63 crore in Q2 FY14. PAT up at Rs. 29 crore as compared to Rs. 28 crore in Q2 FY14.

Tata Power Trading Company Limited (TPTCL): TPTCL traded 2683 MUs as compared to 2884 MUs in the corresponding period last year, resulting in revenues of Rs. 1040 crore as compared to Rs. 988 crore in Q2 FY14. PAT stood at Rs. 8 crore as compared to Rs. 10 crore in Q2 FY14.

Growth Plans:

Projects under Implementation:

Kalinganagar, Odisha CPP 1 - 202.5 MW (3 x 67.5 MW): The project is being executed through Industrial Energy Limited (IEL), a JV of the Company (74%) with Tata Steel Limited (26%) for its steel plant in Kalinganagar, Odisha. The project is in an advanced stage of execution. Hydro test for Unit-3 Boiler completed. LVS commissioned in Central Control Room. TG Unit#1 put on barring gear and TG Unit#2 is placed on their foundations. About 1100 contract workers are working at site.

Renewable Energy Projects:

Wind Power

Out of the total capacity of 32 MW, the Company has commissioned 26 MW at its Visapur wind farms (13 WTGs-32 MW) in Maharashtra as on date. Erection for 2 out of balance 3 WTGs completed. For last WTG, land acquired & target completion is by October 2014. Target commissioning of all balance WTGs is November 2014.

49.5 MW Wind Pethshivpur Project, Kolhapur is expected to be commissioned during FY15.

International Projects:

Dagachhu Hydroelectric Power Project, Bhutan: The 126 MW Dagachhu project is being implemented in Bhutan by Dagachhu Hydro Power Corporation Limited [a JV of the Company]. All works at Dam site, Water Conductor and Power House have been completed. The installation and dry testing of all the Electro-mechanical equipments in the power house has been completed. The wet testing of the project was commenced in the last week of September 2014. Project is expected to be commissioned in FY15.

Cennergi Projects, South Africa: The Company's JV in South Africa, Cennergi (Proprietary) Limited, achieved financial closure of the 134 MW Amakhala Emoyeni Wind Farm and the 95 MW Tsitsikamma Community Wind Farm in May 2013 and June 2013 respectively. Work on both the projects is underway as per schedule. Civil Works for Amakhala project will be completed by December 2014, while for Tsitsikamma project Civil Works is likely to commence in Feb 2015.

Georgia Hydro Project: In June 2013, the Company acquired 40% shares in Adjaristsqali Netherlands BV, which is implementing hydro projects in Georgia through its 100% subsidiary, Adjaristsqali Georgia LLC. The construction of 185 MW Shuakhevi Hydro Project has commenced with all major contracts having been awarded. Project has achieved financial closure,IFC, ADB and European Bank for Reconstruction and development being the lenders to the project. The CP satisfaction process is under progress to achieve the first drawn down from debt. Tunnelling works are under progress. Site construction activities are ongoing at the various faces of the tunnel, Didachara dam, Skhalta Dam, Shuakhevi Powerhouse etc. The Amended and Restated BOO Agreement has been executed with the Government of Georgia. The development of 150 MW Koromkheti Hydro Project has also commenced.

Projects under Development:

Dugar Hydro Electricity JV Project: Remobilization has been completed to carry out further investigations at site. Detailed Project Report is expected to be completed by December 2014.

1600 MW Coastal Maharashtra Project: All statutory clearances required to start the project implementation are in place. The project is in advanced stages of land acquisition.

1980 MW Tiruldih Power Project, Jharkhand: The land acquisition is in progress and is being pursued through new LA Act 2013.