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UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER 2009
AND HALF-YEAR ENDED 30th SEPTEMBER 2009

(Rs /Lakh)
Sl. No. Particulars Quarter ended 30.09.2009 (Unaudited) Quarter ended 30.09.2008 (Unaudited) Half-Year ended 30.09.2009 (Unaudited) Half-Year ended 30.09.2008 (Unaudited) Year ended 31.03.2009 (Audited)
1 2 3 4 5 6 7
1 (a) Net Sales (Net of Electricity Duty) 1078279 966142 2278547 1920089 4192373
  (b) Other operating Income 46982 42968  99511 84769  220235 
2 Expenditure   
  (a) Fuel Cost 660684 595588 1434950 1209443  2711069
  (b) Employees Cost 50403 60466 109445 118256 246313
  (c) Depreciation 64375 52665 125654 107909 236448
  (d) Other Expenditure 45819 55328 95212 95452 195209
  Total (a+b+c+d) 821281 764047 1765261 1531060 3389039
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 303980 245063 612797 473798 1023569
4 Other Income  27118 31511 52217 61433 114668
5 Profit before Interest & Exceptional Items (3+4) 331098 276574 665014 535231 1138237
6 Interest & Finance charges 54069 52635 98536 94826 202290
7 Profit after Interest but before Exceptional Items (5-6) 277029 223939 566478 440405 935947
8 Exceptional items - - - - -
9 Profit(+) /Loss (-) from Ordinary Activities before Tax (7+8) 277029 223939 566478 440405 935947
10 Tax Expenses:
  (a) Current Tax 57494 12418 115684 55735 113834
  (b) Deferred Tax 4243 (12068) 16140 (10335) (44880)
  (c) Fringe Benefit Tax (FBT) 97 479 97 984 2098
  Total (a+b+c) 61834 829 131921 46384 71052
  Less: Deferred Tax Recoverable/(Payable) - (12068) - (10335) (44880)
  FBT transferred to expenditure during construction/ Development of coal mines - 9 - 18 115
  Tax Expense (Net) 61834 12888 131921 56701 115817
11 Net Profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 215195 211051 434557 383704 820130
12 Extraordinary Items (Net of tax expense) - - - - -
13 Net Profit (+)/ Loss (-) for the period (11-12) 215195 211051 434557 383704 820130
14 Paid-up Equity Share Capital (Face value of share Rs.10/- each) 824546 824546 824546 824546 824546
15 Paid-up Debt Capital     3469795 2903680 3456775
16 Reserves excluding Revaluation Reserve as per Balance Sheet of 31st March 2009 - - - - 4912460
17 Debenture Redemption Reserve     150144 136021 168894
18 Earning per share - (EPS) (In Rupees)
 
         
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.61 2.56 5.27 4.65 9.95
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.61 2.56 5.27 4.65 9.95
19 Debt Equity Ratio     0.56 0.51 0.60
20 Debt Service Coverage Ratio(DSCR)     3.59 3.45 3.67
21 Interest Service Coverage Ratio(ISCR)     12.27 10.36 10.19
22 Public Shareholding          
  (a) Number of share 865830000 865830000 865830000 865830000 865830000
  (b) % age of shareholding 10.50 10.50 10.50 10.50 10.50
23 Promoters and Promoter Group Shareholding          
  (a) Pledged/Encumbered          
  - Number of Share - - - - -
  - Percentage of  
share(as % of the total shareholding of promoter and promoter group)
- - - - -
  - Percentage of 
share(as % of the
total share capital
of the company)
- - - - -
  (b) Non-encumbered          
  - Number of Share 7379634400 7379634400 7379634400 7379634400 7379634400
  - Percentage of            share(as % of the total shareholding of promoter and promoter group) 100.00% 100.00% 100.00% 100.00% 100.00%
  - Percentage of share(as % of the total share capital of the company) 89.50% 89.50% 89.50% 89.50% 89.50%

REPORTING OF SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30th SEPTEMBER 2009 AND HALF-YEAR ENDED 30th SEPTEMBER 2009

(Rs /Lakhs)
Sl.
No.
Particulars Quarter ended 30.09.2009 (Unaudited) Quarter ended 30.09.2008 (Unaudited) Half-Year ended 30.09.2009 (Unaudited) Half-Year ended 30.09.2008 (Unaudited) Year ended 31.03.2009 (Audited)
1 2 3 4 5 6 7
1 Segment Revenue (Net Sales)          
  - Generation 1074559 963054 2271419
 
1914247 4179119
  - Others 3720 3088 7128 5842 13254
  - Total 1078279 966142 2278547 1920089 4192373
2 Segment Results (Profit before Tax and Interest)          
  - Generation 259074 280488 526703 473796 905305
  - Others 1732 1058 2896 1462 4184
  - Total 260806 281546 529599 475258 909489
  Less:          
  (i) Unallocated Interest and Finance Charges 36606 113385 65113 142172 208630
  (ii) Other Unallocable expenditure net of unallocable income (52829) (55778) (101992) (107319) (235088)
  Total Profit before Tax 277029 223939 566478 440405  935947
3 Capital Employed (Segment Assets - Segment Liabilities)          
  - Generation 3409840 3060368 3409840 3060368 3383665
  - Others 2450 3279 2450 3279 3226
  - Un-allocated 2759278 2583918 2759278 2583918 2350115
  - Total 6171568 5647565 6171568 5647565 5737006

The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

Notes:

1. (a) The Central Electricity Regulatory Commission (CERC) has notified by Regulations the terms and conditions for determination of tariff applicable with effect from 1st April 2009 for a period of five years. Pending final determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rs 10,46,965 lakh for the quarter and Rs 22,44,046 lakh for the half-year ended 30th September 2009 on the basis of principles enunciated by the CERC in the said Regulations.

Pending final determination of tariff by the CERC as above, the Company continues to provisionally bill the beneficiaries from 1st April 2009 at the tariff approved by the CERC as applicable on 31st March 2009 as provided in the Regulations, 2009. The amount billed for the quarter and for the half-year ended 30th September 2009 on this basis is Rs.10,18,526 lakh and Rs. 21,67,067 lakh respectively.

(b) Sales includes Rs.110 lakh for the quarter and Rs. (-) 111 lakh for the half-year ended 30th September 2009 (corresponding previous quarter Rs.11,107 lakh and half-year Rs.17,286 lakh) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (ATE).

(c) In respect of stations/units where the CERC had issued final tariff orders applicable from 1st April 2004 to 31stMarch 2009, the Company aggrieved over many of the issues as considered by the CERC in the tariff orders, filed appeals with the Apellate Tribunal for Electricity (ATE). The ATE disposed off the appeals favourably directing the CERC to revise the tariff orders as per the directions and methodology given. The CERC filed an appeal with the Hon’ble Supreme Court of India on some of the issues decided by the ATE which is pending. The Hon’ble Supreme Court of India has not stayed the orders of ATE and the sales for the tariff period 2004-2009 amounting to Rs.104,429 lakh have been recognised in earlier years based on provisional tariff worked out by the Company as per the methodology and directions as decided by the ATE and the expert legal opinions obtained. Consequently, sales recognised for this quarter and half-year ended 30th September 2009 based on CERC Regulations, 2009 are lower by Rs.470 lakh and Rs.940 lakh respectively.

2. The CERC has issued Tariff Regulations, 2009 for a period of five years from 1st April 2009. These Regulations provide that the balance depreciable value of the each of the existing stations as on 1st April, 2009 shall be worked out by deducting the cumulative depreciation including the Advance Against Depreciation (AAD) as admitted by the CERC up to 31st March 2009 from the gross depreciable value of the assets. There is no provision for AAD in the said Regulations.

In view of the change in the depreciation rates for tariff purposes as notified by the CERC, the company revised its accounting policy and the amount of AAD required to meet the shortfall in the component of depreciation in revenue over the depreciation to be charged off in future years has been assessed station-wise and wherever an excess has been determined as on 1st April 2009, the same amounting to Rs.27,484 lakh has been recognised as sales during the quarter and half-year ended 30th September 2009.

3. Employees cost includes:

(a) Rs.2,428 lakh for the quarter and Rs.19,491 lakh for the half-year ended 30th September 2009 (corresponding previous quarter Rs.14,212 lakh and half-year Rs.24,226 lakh) towards pay revision of employees due w.e.f. 1st January 2007 in line with the guidelines issued by the Department of Public Enterprises, Government of India.

(b) Rs.6,641 lakh for the quarter and Rs. 14,932 lakh for the half-year ended 30th September 2009 (corresponding previous quarter Rs.17,500 lakh and half-year Rs.34,701 lakh ) towards other employees benefits.

4. Other expenditure for the quarter and half-year ended 30th September 2009 are net off of excess provision for employees' benefits amounting to Rs. 8,293 lakh related to prior periods.

5. Interest and Finance charges include:

(a) Exchange differences regarded as an adjustment to interest costs amounting to Rs.7,485 lakh for the quarter and half-year ended 30th September 2009 (corresponding previous quarter Rs.9,226 lakh and half-year Rs.12,280 lakh).

(b) Other exchange differences arising on translation of foreign currency loans/liabilities amounting to Rs. 855 lakh for the quarter and Rs. 878 lakh for the half-year ended 30th September 2009 (corresponding previous quarter Rs.743 lakh and half-year Rs.3,732 lakh).

6. Fringe benefit tax during the quarter and half-year ended 30th September 2009 pertains to earlier year.

7. During the quarter, the Company has paid final dividend of Rs.0.80 per share (face value Rs.10/- each) for the financial year 2008-09.

8. Formula used for computation of coverage ratios DSCR = Earning before Interest, Depreciation and Tax/ (Interest net off transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation and Tax/ (Interest net off transferred to expenditure during construction).

9. Construction work at Loharinag Pala Hydro Power Project has been suspended temporarily on the advice of Ministry of Power, Government of India (GOI) pending report of the Committee appointed by GOI.

10. Information on investors complaints pursuant to Clause 41 of Listing Agreements for the quarter ending 30thSeptember 2009:

Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 7 1669 1668 8

11. The above results have been reviewed by the Audit Committee of the Board of Directors and approved by the Board of Directors in their meetings held on 23rd October 2009.

12. The above results have been reviewed by the Statutory Auditors as required under Clause 41 of the Listing Agreements.

13. Figures for the previous period have been regrouped/rearranged wherever necessary.