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UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 30th SEPTEMBER 2011

(Rupee/Lakh)
Sl. No. Particulars Quarter ended 30.09.2011 (Unaudited) Quarter ended 30.09.2010 (Unaudited) Half-Year ended 30.09.2011 (Unaudited) Half-Year ended 30.09.2010 (Unudited) Year ended 31.03.2011 (Audited)
1 2 3 4 5 6 7
1 (a) Net Sales (Net of Electricity Duty) 1537754 1298929 2954903 2593378 5487400
  (b) Other Operating Income 32126 6437 67436 13078 35074
  (c) Depreciation Written Back (net) & Advance Against Deprecitation recognised as Prior Period Sales - 176342 - 176342 184054
  Total (a+b+c) 1569880 1481708 3022339 2782798 5706528
2 Expenditure   
  (a) Fuel Cost 1064940 860727 2039922 1730958 3537378
  (b) Employees Cost 78461 70918 147533 139300 278971
  (c) Depreciation 65828 50628 129941 118900 248569
  (d) Other Expenditure 70462 86162 156933 161425 357357
  (e) Provisions 1 126267 2 126278 155215
  Total (a+b+c+d+e) 1279692 1194702 2474331 2276861 4577490
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 290188 287006 548008 505937 1129038
4 Other Income  68807 55838 133137 106379 218256
5 Profit before Interest & Exceptional Items (3+4) 358995 342844 681145 612316 1347294
6 Interest & Finance charges 33117 39945 70552 74098 142334
7 Profit after Interest but before Exceptional Items (5-6) 325878 302899 610593 538218 1204960
8 Exceptional Items - - - - -
9 Profit(+) /Loss (-) from Ordinary Activities before Tax (7+8) 325878 302899 610593 538218 1204960
10 Tax Expenses:
  (a) Current Tax 99412 64333 180733 106450 255332
  (b) Deferred Tax (15946) 27828 (20130) 36841 39369
  Total Tax Expenses (a+b) 83466 92161 160603 143291 294701
11 Net Profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 242412 210738 449990 394927 910259
12 Extraordinary Items (Net of tax expenses) - - - - -
13 Net Profit (+)/ Loss (-) for the period (11-12) 242412 210738 449990 394927 910259
14 Paid-up Equity Share Capital (Face value of share Rs.10/- each) 824546 824546 824546 824546 824546
15 Paid-up Debt Capital     4746055 3928213 4318824
16 Reserves excluding revaluation reserve as per Balance Sheet - - - - 5964679
17 Debenture Redemption Reserve     198166 177422 223166
18 Earning per share - (EPS in Rupee)
 
         
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.94 2.56 5.46 4.79 11.04
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.94 2.56 5.46 4.79 11.04
19 Debt Equity Ratio     0.66 0.59 0.64
20 Debt Service Coverage Ratio(DSCR)     3.18 3.00 2.57
21 Interest Service Coverage Ratio(ISCR)     11.58 10.08 11.42
22 Public Shareholding          
  (a) Number of shares 1278103220 1278103220 1278103220 1278103220 1278103220
  (b) % age of shareholding 15.50 15.50 15.50 15.50 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 6967361180 6967361180 6967361180 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 84.50 84.50 84.50 84.50

REPORTING OF SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND HALF-YEAR ENDED 30th SEPTEMBER 2011

(Rupee/Lakh)
Sl.
No.
Particulars Quarter ended 30.09.2011 (Unaudited) Quarter ended 30.09.2010 (Unaudited) Half-Year ended 30.09.2011 (Unaudited) Half-Year ended 30.09.2010 (Unaudited) Year ended 31.03.2011 (Audited)
1 2 3 4 5 6 7
1 Segment Revenue          
  - Generation 1565599 1301354 3014735 2599434 5506913
  - Others 4319 4013 7935 7988 17174
  - Total 1569918 1305367 3022670 2607422 5524087
2 Segment Results (Profit before Tax and Interest)          
  - Generation 306390 310220 582749 549047 1208578
  - Others 1294 662 2459 2195 5014
  - Total 307684 310882 585208 551242 1213592
  Less          
  (i) Unallocated Interest and Finance Charges 33117 39945 75002 74098 142334
  (ii) Other Unallocable expenditure net of unallocable income (51311) (31962) (95937) (61074) (133702)
  Total Profit before Tax 325878 302899 610593 538218 1204960
3 Capital Employed (Segment Assets - Segment Liabilities)          
  - Generation 5222047 4063511 5222047 4063511 4526023
  - Others 8611 1801 8611 1801 425
  - Un-allocated 2008557 2573357 2008557 2573357 2262777
  - Total 7239215 6638669 7239215 6638669 6789225
The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.


1. (a) The Central Electricity Regulatory Commission (CERC) notified the Tariff Regulations, 2009 (Regulations, 2009) in January 2009, and also notified First and Second Amendment in May and June 2011. In line with the First Amendment dated 2nd May 2011, during the year the CERC has issued provisional tariff orders w.e.f. 1st April 2009 for all the stations except Talcher Thermal Power Station and Korba Super Thermal Power Station - III. Beneficiaries are billed in accordance with the said provisional tariff orders except for the stations, where it is done on provisional basis. The amount billed during the quarter and for the half-year ended 30th September 2011 on this basis are Rupee 1,393,079 lakh and Rupee 2,708,576 lakh respectively (Corresponding previous quarter and half-year Rupee 1,174,959 lakh and Rupee 2,386,113 lakh respectively).

(b) CERC has issued final tariff orders of only one station under the Regulations, 2009, which considers the projected year-wise additional capital expenditure for the tariff period 2009-14. Sales for this station has been recognised, by truing up capital expenditure to arrive at the capacity charges. Sales for the station has been recognised as Rupee 81,087 lakh for the quarter and Rupee 154,667 lakh for the half-year ended 30th September 2011 (Corresponding previous quarter and half-year Rupee 43,898 lakh and Rupee 78,474 lakh respectively). Corresponding billing for the quarter and for the half-year ended 30th September 2011 is Rupee 85,802 lakh and Rupee 156,800 lakh respectively. For all other stations, pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rupee 1,370,580 lakh for the quarter and Rupee 2,733,887 lakh for the half-year ended 30th September 2011 respectively (Corresponding previous quarter and half-year Rupee 1,225,232 lakh and Rupee 2,470,828 lakh respectively) on the basis of principles enunciated in the said Regulations, 2009 including the Amendments thereto.

(c) Sales include Rupee 75,935 lakh for the quarter and Rupee 51,881 lakh for the half-year ended 30th September 2011 respectively (Corresponding previous quarter and half-year Rupee 18,129 lakh and Rupee 22,056 lakh respectively) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

(d) The Company aggrieved over many of the issues as considered by the CERC in the tariff orders for its stations for the period 2004-09 had filed appeals with the APTEL. The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per directions and methodology given, the CERC filed appeals in the Hon’ble Supreme Court of India on some of the issues decided in favour of the Company by the APTEL. The CERC has issued revised tariff orders for all stations for the period 2004-09 excepting for few stations, considering the judgment of APTEL subject to disposal of appeals pending before the Hon’ble Supreme Court of India. Consequently, the Company is billing and recovering the dues as per the aforesaid orders of the CERC, the impact of aforesaid issues has been recognized as sales during the quarter and half-year ended 30th September, 2011. Provision for doubtful debt of Rupee 126,286 lakh created in the earlier years have been reversed and ‘Provision for Tariff Adjustment’ has been created to the extent of the impact of the aforesaid issues recognised as sales, as the appeal filed by the CERC with the Hon’ble Supreme Court is pending disposal.

(e) Sales include Rupee 5,001 lakh for the quarter and half-year ended 30th September 2011(Corresponding previous quarter and half-year Rupee 5,030 lakh) on account of income tax recoverable from customers as per Regulations, 2004. Sales also include Rupee 894 lakh for the quarter and Rupee 1,787 lakh for the half-year ended 30th September 2011 respectively on account of deferred tax materialized which is recoverable from customers as per Regulations, 2009.

2. Interest and finance charges:

(a) include exchange differences regarded as an adjustment to interest costs Rupee 4,574 lakh for the quarter and Rupee8,210 lakh for the half-year ended 30th September 2011 respectively (Corresponding previous quarter and half-year Rupee 3,103 lakh and Rupee 7,715 lakh respectively).

(b) are after adjustment of Rupee 19,883 lakh being the reversal of interest payable to beneficiaries as per APTEL order, liability for which created in earlier years. Consequent upon the favourable judgement of the Hon'ble Supreme Court of India, the same has been reversed during the quarter and half-year ended 30th September 2011.

3. Other expenditure include exchange differences arising from settlement/translation of foreign currency monetary items denominated in foreign currency (other than long term) of Rupee 1,232 lakh for the quarter and Rupee1,599 lakh for the half-year ended 30th September 2011 respectively (Corresponding previous quarter and half year Rupee 1,126 lakh and (-) Rupee 33 lakh respectively).

4. Current tax expense includes Rupee 27,346 lakh and Rupee 47,175 lakh for the quarter and half-year ended 30th September 2011 respectively (Corresponding previous quarter and half-year Rupee Nil) related to earlier year.

5. Loans and advances include Rupee 76,407 lakh recoverable from GOI on account of expenditure incurred on one of the hydro power project, construction of which has been discontinued on the advice of Ministry of Power, GOI. Management expects that the total cost incurred, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs as well as claims of various packages of contractors/vendors for this project will be compensated in full by the GOI. Since, management is confident of recovery of the cost incurred, hence no provision is made.

6. The Company is executing a thermal power project in respect of which possession certificates for 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 2011 Rupee 19,251 lakh is included in fixed assets including CWIP, construction stores & advances. Since, management is confident of recovery of the cost incurred, hence no provision is made.

7. 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).

8. During the quarter, one unit of 500 MW at Simhadri project of the Company has been declared commercial w.e.f 16th September 2011.

9. During the quarter, the Company has paid final dividend of Rupee 0.80 per share (face value of Rupee 10/- each) for the financial year 2010-11.

10. Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 30th September 2011:

Sl.No. Opening Additions Disposals Closing Balance
No. of complaints 7 1530 1534 3

11. Summary of Assets and Liabilities:

Particulars As At 30.09.2011
(Unaudited)
As At 30.09.2010
(Unaudited)
SOURCES OF FUNDS    
Shareholder's Funds:    
(a) Share capital 824546 824546
(b) Reserves and Surplus 6414669 5814123
Deferred Revenue on Account of Advance Against Depreciation 72135 81423
Deferred Income From Foreign Currency Fluctuation 54007 13138
Loan Funds 4746055 3928213
Deferred Foreign Currency Fluctuation Liability 12526 6886
Deferred Tax Liability (net) less Recoverable 40165 57766
TOTAL 12164103 10726095
APPLICATION OF FUNDS    
Fixed Assets incl. CWIP and Construction Stores & Advances 8360379 7173113
Investments 1280340 1337123
Deferred Foreign Currency Fluctuation Assets 97696 48589
Current Assets, Loans and Advances:    
(a) Inventories 312879 304544
(b) Sundry Debtors 1115615 471036
(c) Cash and Bank Balances 1791444 1916934
(d) Other Current Assets 96003 89961
(e) Loans and Advances 537183 575182
Less: Current Liabilities and Provisions    
(a) Liabilities 1105356 993344
(b) Provisions 325571 199051
Net Current Assets 2422197 2165262
Deferred Expense From Foreign Currency Fluctuation 3491 2008
TOTAL 12164103 10726095

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 25th October 2011.

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

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

For and on behalf of the Board of Directors

Place: New Delhi
Date 25th October 2011

(A. K. SINGHAL)
DIRECTOR (FINANCE)