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UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE-MONTH PERIOD 
ENDED 31ST DECEMBER 2010

(Rs/Lakh)
Sl. No. Particulars Quarter ended 31.12.2010 (Unaudited) Quarter ended 31.12.2009 (Unaudited) Nine-Month Period ended 31.12.2010 (Unaudited) Nine-Month Period ended 31.12.2009 (Unaudited) Year ended 31.03.2010 (Audited)
1 2 3 4 5 6 7
1 (a) Net Sales (Net of Electricity Duty) 1342128 1118373 3935506 3396920 4632259
  (b) Other Operating Income 46732 52547 118657 152058 189873 
  (c) Depreciation Written Back (net) & Advance Against Deprecitation recognised as Prior Period Sales 7521 (155) 183863 (295) (1655)
  Total (a+b+c) 1396381 1170765 4238026 3548683 4820477
2 Expenditure   
  (a) Fuel Cost 833864 676726 2564822 2111676 2946274
  (b) Employees Cost 68852 57230 208152 166675 241236
  (c) Depreciation 59855 66136 178755 191790 265006
  (d) Other Expenditure 63099 47600 186536 142649 199965
  (e) Provisions 539 137 126817 160 1090
  Total (a+b+c+d+e) 1026209  847829 3265082 2612950 3653571
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 370172 322936 972944 935733 1166906
4 Other Income  20209 25366 68250 77583 102533
5 Profit before Interest & Exceptional Items (3+4) 390381 348302 1041194 1013316 1269439
6 Interest & Finance charges 49318 34178 161913 132714 180893
7 Profit after Interest but before Exceptional Items (5-6) 341063 314124 879281 880602 1088546
8 Exceptional items - - - - -
9 Profit(+) /Loss (-) from Ordinary Activities before Tax (7+8) 341063 314124 879281 880602 1088546
10 Tax Expenses:
  (a) Current Tax 87250 88622 193700 204306 194544
  (b) Deferred Tax 16665 (11168) 53506 4972 20913
  (c) Fringe Benefit Tax (FBT) - 172 - 269 269
  Total Tax Expenses 103915 77626 247206 209547 215726
11 Net Profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 237148 236498 632075 671055 872820
12 Extraordinary Items (Net of tax expenses) - - - - -
13 Net Profit (+)/ Loss (-) for the period (11-12) 237148 236498 632075 671055 872820
14 Paid-up Equity Share Capital
(Face value of share Rs.10/- each)

824546

824546

824546

824546

824546
15 Reserves excluding revaluation reserve as per Balance Sheet of 31st March 2010 - - - - 5419196
16 Earning per share - (EPS in Rs.)
 
         
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.88 2.87 7.67 8.14 10.59
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.88 2.87 7.67 8.14 10.59
17 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
18 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 NINE MONTH PERIOD ENDED 31st DECEMBER 2010

(Rs/Lakh)
Sl. No. Particulars Quarter ended 31.12.2010 (Unaudited) Quarter ended 31.12.2009 (Unaudited) Nine-Month Period ended 31.12.2010 (Unaudited) Nine-Month Period ended 31.12.2009 (Unaudited) Year ended 31.03.2010 (Audited)
1 2 3 4 5 6 7
1 Segment Revenue (Net Sales)          
  - Generation 1337887 1114919 3923341 3386338 4616867
  - Others 4241 3454 12165 10582 15392
  - Total 1342128 1118373 3935506 3396920 4632259
2 Segment Results (Profit before Tax and Interest)          
  - Generation 332751 291000 882355 817703 1015253
  - Others 2060 1256 4258 4152 5816
  - Total 334811 292256 886613 821855 1021069
  Less          
  (i) Unallocated Interest and Finance Charges 31830 17985 106834 83098 111682
  (ii) Other Unallocable expenditure net of unallocable income (38082) (39853) (99502) (141845) (179159)
  Total Profit before Tax 341063 314124 879281 880602  1088546
3 Capital Employed (Segment Assets - Segment Liabilities)          
  - Generation 4230963 3555671 4230963 3555671 3945020
  - Others 2071 2986 2071 2986 5445
  - Unallocated 2642783 2849409 2642783 2849409 2293277
  - Total 6875817 6408066 6875817 6408066 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. 1,283,677 lakh for the quarter and Rs. 3,826,801 lakh for the nine-month period ended 31st December 2010 (previous quarter and nine-month period Rs. 1,085,647 lakh and Rs. 3,329,693 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 nine-month period ended 31st December 2010 on this basis are Rs. 1,300,612 lakh and Rs. 3,766,927 lakh respectively (previous quarter and nine-month period Rs. 1,099,444 lakh and Rs. 3,266,511 lakh respectively).

(b) Sales includes Rs. 15,980 lakh for the quarter and Rs. 38,036 lakh for the nine-month period ended 31stDecember 2010 (previous quarter and nine-month period Rs. 19,406 lakh and Rs. 19,295 lakh respectively) pertaining to previous years recognized based on the orders issued by the CERC/APTEL.

(c) Sales includes Rs. 32,243 lakh for the quarter and Rs. 37,273 lakh for the nine-month period ended 31stDecember 2010 (previous quarter and nine-month Rs. 7,483 lakh) on account of income tax recoverable from beneficiaries as per Regulations, 2004. Sales also includes Rs. 2,879 lakh for the quarter and Rs. 11,945 lakh for the nine-month period ended 31st December 2010 on account of deferred tax materialised which is recoverable from beneficiaries as per Regulations, 2009.

(d) A sum of Rs. 18 lakh for the quarter and Rs. 126,286 lakh for the nine-month period ended 31stDecember 2010 included in debtors on the basis of certain APTEL orders in favour of the Company have been fully provided for during the nine-month period ended 31st December 2010 and shown as provisions.

2. (a) In the previous quarter, the Office of the Comptroller & Auditor General of India expressed an opinion that the rates of depreciation notified by the CERC shall be followed by the Company for providing depreciation in the accounts instead of the rates as per the Companies Act, 1956 in respect of generating assets. Accordingly, the Company 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. 9,086 lakh for the quarter and Rs. 111,178 lakh for the nine-month period ended 31st December 2010. Depreciation for the quarter and nine-month period ended 31st December 2010 is lower by Rs. 5,486 lakh and Rs. 16,125 lakh respectively. As a result, profit before tax for the quarter and nine-month period ended 31st December 2010 is higher by Rs. 14,572 lakh and Rs. 127,303 lakh respectively.

(b) Due to the 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. 1,514 lakh for the quarter and Rs. 72,749 lakh for the nine-month period ended 31st December 2010 has been recognised as prior period sales. Further, an amount of Rs. 3,108 lakh and Rs. 9,286 lakh of AAD has been recognised as sales during the quarter and nine-month period ended 31st December 2010 respectively.

3. Interest and finance charges include :

(a) Exchange differences regarded as adjustment to interest costs Rs. 3,513 lakh for the quarter and Rs. 11,228 lakh for the nine-month period ended 31st December 2010 (previous quarter Rs. 7,485 lakh (credit) and nine-month period Rs. Nil).

(b) Other exchange differences arising from settlement/translation of foreign currency monetary items denominated in foreign currency (other than long term) amounting to Rs. 57 lakh for the quarter and Rs. 533 lakh for the nine-month period ended 31st December 2010 (previous quarter and nine-month period Rs. 744 lakh (credit) and Rs. 134 lakh respectively).

4. During the quarter, Ministry of Power (MOP), Government of India informed that one of the hydro power projects of the Company, which was being implemented pursuant to the various clearances/approvals, is to be discontinued. MOP has sought details of expenditure incurred, committed expenditure and possible expenses for winding up of the project. Management expects that the cost incurred and the committed cost for this project will be compensated in full and hence no provision is considered necessary.

5. Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31stDecember 2010:

Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 13 2129 2134 8

6. 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 31st January 2011.

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

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

For and on behalf of Board of Directors

Place: New Delhi
Date 31st January 2011

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