Investors

« Back Q2 Financial results 2010 -2011

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 30th SEPTEMBER 2010

(Rs/Lakh)
Sl. No. Particulars Quarter ended 30.09.2010 (Unaudited) Quarter ended 30.09.2009 (Unaudited) Half-Year ended 30.09.2010 (Unaudited) Half-Year ended 30.09.2009 (Audited) Year ended 31.03.2010 (Audited)
1 2 3 4 5 6 7
1 (a) Net Sales (Net of Electricity Duty) 1298929 1078279 2593378 2278547 4632259
  (b) Other operating Income 36119 46982  71925 99511 189873 
  (c) Depreciation Written Back (net) & Advance Against Deprecitation recognised as Prior Period Sales 176334 (118) 176342 (140) (1655)
  Total (a+b+c) 1511382 1125143 2841645 2377918 4820477
2 Expenditure   
  (a) Fuel Cost 860727 660684 1730958 1434950 2946274
  (b) Employees Cost 70918 50403 139300 109445 241236
  (c) Depreciation 50628 64375 118900 125654 265006
  (d) Other Expenditure 66277 45678 123437 95049 199965
  (e) Provisions 126267 23 126278 23 1090
  Total (a+b+c+d+e) 1174817  821163 2238873 1765121 3653571
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 336565 303980 602772 612797 1166906
4 Other Income  25354 27118 48041 52217 102533
5 Profit before Interest & Exceptional Items (3+4) 361919 331098 650813 665014 1269439
6 Interest & Finance charges 59020 54069 112595 98536 180893
7 Profit after Interest but before Exceptional Items (5-6) 302899 277029 538218 566478 1088546
8 Exceptional items - - - - -
9 Profit(+) /Loss (-) from Ordinary Activities before Tax (7+8) 302899 277029 538218 566478 1088546
10 Tax Expenses:
  (a) Current Tax 64333 57494 106450 115684 194544
  (b) Deferred Tax 27828 4243 36841 16140 20913
  (c) Fringe Benefit Tax (FBT) - 97 - 97 269
  Total Tax Expenses (Net) 92161 61834 143291 131921 215726
11 Net Profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 210738 215195 394927 434557 872820
12 Extraordinary Items (Net of tax expenses) - - - - -
13 Net Profit (+)/ Loss (-) for the period (11-12) 210738 215195 394927 434557 872820
14 Paid-up Equity Share Capital (Face value of share Rs.10/- each)
824546

824546

824546

824546

824546
15 Paid-up Debt Capital     3928212 3469795 3779702
16 Reserves excluding revaluation reserve as per Balance Sheet - - - - 5419196
17 Debenture Redemption Reserve     177422 150144 198672
18 Earning per share - (EPS In Rs.)
 
         
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.56 2.61 4.79 5.27 10.59
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.56 2.61 4.79 5.27 10.59
19 Debt Equity Ratio     0.59 0.56 0.61
20 Debt Service Coverage Ratio(DSCR)     3.00 3.59 3.92
21 Interest Service Coverage Ratio(ISCR)     10.08 12.27 13.64
22 Public Shareholding          
  (a) Number of shares 1278103220 865830000 1278103220 865830000 1278103220
  (b) % age of shareholding 15.50 10.50 15.50 10.50 15.50
23 Promoters and Promoter Group Shareholding          
  (a) Pledged/Encumbered          
  - Number of Shares - - - - -
  - 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 Shares 6967361180 7379634400 6967361180 7379634400 6967361180
  - 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) 84.50 89.50 84.50 89.50 84.50

REPORTING OF SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER  AND HALF-YEAR ENDED 30th SEPTEMBER 2010

(Rs/Lakhs)
Sl.
No.
Particulars Quarter ended 30.09.2010 (Unaudited) Quarter ended 30.09.2009 (Unaudited) Half-Year ended 30.09.2010 (Unaudited) Half-Year ended 30.09.2009 (Audited) Year ended 31.03.2010 (Audited)
1 2 3 4 5 6 7
1 Segment Revenue (Net Sales)          
  - Generation 1294959 1074559 2585454
 
2271419 4616867
  - Others 3970 3720 7924 7128 15392
  - Total 1298929 1078279 2593378 2278547 4632259
2 Segment Results (Profit before Tax and Interest)          
  - Generation 310677 259074 549604 526703 1015253
  - Others 661 1732 2198 2896 5816
  - Total 311338 260806 551802 529599 1021069
  Less          
  (i) Unallocated Interest and Finance Charges 40746 36606 75004 65113 111682
  (ii) Other Unallocable expenditure net of unallocable income (32307) (52829) (61420) (101992) (179159)
  Total Profit before Tax 302899 277029 538218 566478  1088546
3 Capital Employed (Segment Assets - Segment Liabilities)          
  - Generation 4063511 3409840 4063511 3409840 3945020
  - Others 1801 2450 1801 2450 5445
  - Un-allocated 2573357 2759278 2573357 2759278 2293277
  - Total 6638669 6171568 6638669 6171568 6243742
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) notified the Tariff Regulations, 2009 (Regulations, 2009) in January 2009, containing inter-alia the terms and conditions for determination of tariff applicable for a period of five years with effect from 1st April 2009. Pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rs.1,262,952  lakh for the quarter and Rs.2,543,124 lakh for the half-year ended 30th September 2010 respectively (previous quarter and half-yearRs.1,046,965 lakh and Rs.2,244,046 lakh respectively) on the basis of principles enunciated in the said Regulations on the capital cost considering the orders of Appellate Tribunal for Electricity (APTEL) for the tariff period 2004-2009.

The Regulations, 2009 provide that pending determination of tariff by the CERC, the Company has to provisionally bill the beneficiaries at the tariff applicable as on 31st March 2009 approved by the CERC. The amount provisionally billed during the quarter and for the half-year ended 30th September 2010 on this basis are Rs.1,219,791 lakh and Rs.2,466,395 lakh respectively (previous quarter and half-year Rs.1,018,526 lakh and Rs.2,167,067 lakh respectively).

(b) Sales includes Rs.18,129 lakh for the quarter and Rs.22,056 lakh for the half-year ended 30th September 2010 respectively (previous quarter and half-year Rs.110 lakh and Rs. (-)111 lakh respectively) pertaining to previous years recognized based on the orders issued by the CERC/APTEL.

(c) Sales includes Rs.5,030 lakh for the quarter and half-year ended 30th September 2010 (previous quarter and half-year Rs. Nil) on account of income tax recoverable from customers as per Regulations, 2004. Sales also includes Rs.2,670 lakh for the quarter and Rs.9,066 lakh for the half-year ended 30th September 2010 respectively on account of deferred tax materialized which is recoverable from customers as per Regulations, 2009.

(d) A sum of Rs.126,268 lakh included in debtors on the basis of certain APTEL orders in favour of the Company have been fully provided for during the quarter and shown as provisions.

2. (a) During the quarter, the Office of the Comptroller & Auditor General of India has expressed an opinion that the rates of depreciation notified by the CERC shall be followed by the Company instead of the rates as per the Companies Act, 1956 for providing depreciation in the accounts. Accordingly, the Company has revised its accounting policies relating to charging of depreciation w.e.f 1st April 2009 considering the rates and methodology notified by the CERC for determination of tariff through Regulations, 2009. In case of certain assets, the Company has continued to charge higher depreciation based on technical assessment of useful life of those assets. Consequent to this change, prior period depreciation written back is Rs.102,068 lakh for the quarter and half-year ended 30th September 2010. Depreciation for the quarter and half-year ended 30th September 2010 is lower by Rs.10,639 lakh. As a result, profit before tax for the quarter and half-year ended 30th September 2010 is higher by Rs.112,707 lakh.

(b) Due to above change, the amount of advance against depreciation (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 reassessed by the Company station-wise as at 1st April 2009 and the excess determined amounting to Rs.74,263 lakh has been recognised as prior period sales. Further, an amount of  Rs.6,178 lakh of AAD has been recognised as sales during the quarter and half-year ended 30th September 2010.

(c) Further due to the above change, deferred tax liability (net) and the deferred tax recoverable from the beneficiaries as at 31st March 2010 amounting to Rs.304,942 lakh and Rs.284,016 lakh respectively have been reviewed and restated to Rs.438,602 lakh and Rs.380,966 lakh respectively. In terms of Regulation 39, CERC Tariff Regulations, 2009, the Company has determined the amount of the deferred tax liability (net) materialised during the period pertaining to the period up to 31st March 2009 by identifying the major changes in the elements of deferred tax liability/asset, as recoverable from the beneficiaries. An amount of Rs.9,066 lakhs has been recognised as sales during the half-year and the balance deferred tax liability (net) and the deferred tax recoverable from the beneficiaries as at 30th September 2010 works out to Rs.429,666 lakh and Rs.371,900 lakh respectively.

3. Interest and finance charges include :

(a) Exchange differences regarded as adjustment to interest costs Rs.3,103 lakh for the quarter and  Rs.7,715 lakh for the half-year ended 30th September 2010 respectively (previous quarter and half-year Rs.7,485 lakh).

(b) Other exchange differences arising from settlement/translation of foreign currency monetary items denominated in foreign currency (other than long term) amounting to Rs.1,126 lakh for the quarter and Rs.(-) 33 lakh for the half-year ended 30th September 2010 respectively (previous quarter and half-year Rs.721 lakh and Rs.525 lakh respectively).

4. Fixed assets including CWIP, construction stores & advances include Rs.69,159 lakh in respect of one of the hydro power project, the construction of which has been put under suspension since February 2009 and is now understood to have been recommended for scrapping by the Group of Ministers, Government of India (GOI) along-with the recommendations for compensating the Company for project related expenditure and commitments. Management is confident of reimbursement of the cost, hence no provision is made.

Further, borrowing cost for the said project amounting to Rs.628 lakh for the quarter and  Rs.1,260 lakh for the half-year ended 30th September 2010 has been accounted as due from GOI.

5. The Company is executing a thermal power project in respect of which possession certificates for 1,489 acres of land has been handed over to the Company and all statutory and environment clearances for the project have been received. Subsequently, a high power committee has been constituted as per the directions of GOI to explore alternate location of the project since present location is stated to be a coal bearing area. Aggregate cost incurred up to 30th September 2010 Rs.18,775 lakh is included in fixed assets including CWIP, construction stores & advances. Management is confident of recovery of the cost incurred, hence no provision is made.

6. 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)

7. During the quarter, one unit of 490 MW at Dadri project of the Company has been declared commercial w.e.f 31st July 2010.

8. During the quarter, the Company has paid final dividend of Rs.0.80 per share (face value Rs.10/- each) for the financial year 2009-10. 

9. Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 30thSeptember 2010:

Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 7 2882 2876 13

10. Summary of Assets and Liabilities:

(Rs/Lakhs)
Particulars As At 30.09.2010
(Unaudited)
As At 30.09.2009
(Audited)
SOURCES OF FUNDS    
Shareholder's Funds:    
(a) Share capital 824546 824546
(b) Reserves and Surplus 5814123 5347022
Deferred Revenue on Account of Advance Against Depreciation 81423 161846
Deferred Income From Foreign Currency Fluctuation 13138 45631
Loan Funds:    
(a) Secured Loans 968062 923591
(b) Unsecured Loans 2960150 2546204
Deferred Foreign Currency Fluctuation Liability 6886 6224
Deferred Tax Liability (net) less Recoverable 57766 16153
TOTAL 10726094 9871217
APPLICATION OF FUNDS    
Fixed Assets incl. CWIP and Construction Stores & Advances 7173113 6219146
Investments 1337123 1645896
Deferred Foreign Currency Fluctuation Assets 48589 84873
Current Assets, Loans and Advances:    
(a) Inventories 304544 270474
(b) Sundry Debtors 471036 561331
(c) Cash and Bank Balances 1917268 1638679
(d) Other Current Assets 89962 102208
(e) Loans and Advances 575196 352674
Less: Current Liabilities and Provisions    
(a) Liabilities 993695 813009
(b) Provisions 199050 191055
Net Current Assets 2165261 1921302
Deferred Expense From Foreign Currency Fluctuation 2008 -
TOTAL 10726094 9871217

reviewed by the Statutory Auditors as required under Clause 41 of the Listing Agreements.

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

12. 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 26th October 2010.

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

12. 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 26th October 2010.

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

reviewed by the Statutory Auditors as required under Clause 41 of the Listing Agreements.

For and on behalf of the Board of Directors

Place: New Delhi
Date 26th October 2010

Sd/-
(A. K. SINGHAL)
DIRECTOR (FINANCE)