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UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE-MONTH PERIOD ENDED 31st DECEMBER 2011

(Rupee/Lakh)
Sl. No. Particulars Quarter ended 31.12.2011 (Unaudited) Quarter ended 30.09.2011 (Unaudited) Quarter ended 31.12.2010 (Unaudited) Nine-Month Period ended 31.12.2011 (Unaudited) Nine-Month Period ended 31.12.2010 (Unaudited) Year ended 31.3.2011 (Audited)
1 2 3 4 5 6 7 8
1 (a) Net Sales (Net of Electricity Duty) 1533230 1537754 1342128 4488133 3935506 5487400
  (b) Other Operating Income 5109 3631 1502 36985 4874 7249
  (c) Depreciation Written Back (net) & Advance Against Depreciation recognised as Prior Period Sales 101 - 7521 101 183863 184054
  Total (a+b+c) 1538440 1541385 1351151 4525219 4124243 5678703
2 Expenditure   
  (a) Fuel Cost 1079329 1064940 833864 3119251 2564822 3537378
  (b) Employees Cost 71882 78461 68852 219415 208152 278971
  (c) Depreciation 75603 65828 59855 205544 178755 248569
  (d) Other Expenditure 91624 70462 79892 248557 241350 357357
  (e) Provisions 4859 1 539 4861 126817 155215
  Total (a+b+c+d+e) 1323297 1279692 1043002 3797628 3319896 4577490
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2) 215143 261693 308149 727591 804347 1101213
4 Other Income  86102 97302 65382 254799 181500 246081
5 Profit before Interest & Exceptional Items (3+4) 301245 358995 373531 982390 985847 1347294
6 Interest & Finance charges 44962 33117 32468 115514 106566 142334
7 Profit after Interest but before Exceptional Items (5-6) 256283 325878 341063 866876 879281 1204960
8 Exceptional Items - - - - - -
9 Profit(+) /Loss (-) from Ordinary Activities before Tax (7+8) 256283 325878 341063 866876 879281 1204960
10 Tax Expenses:
  (a) Current Tax 32882 99412 87250 213615 193700 255332
  (b) Deferred Tax 10362 (15946) 16665 (9768) 53506 39369
  Total Tax Expenses (a+b) 43244 83466 103915 203847 247206 294701
11 Net Profit (+)/ Loss (-) from Ordinary Activity after Tax (9-10) 213039 242412 237148 663029 632075 910259
12 Extraordinary Items (Net of tax expenses) - - - - - -
13 Net Profit (+)/ Loss (-) for the period (11-12) 213039 242412 237148 663029 632075 910259
14 Paid-up Equity Share Capital (Face value of share Rupee10/- each) 824546 824546 824546 824546 824546 824546
15 Reserves excluding revaluation reserve as per Balance Sheet - - - - - 5964679
16 Earning per share - (EPS in Rupee)
 
           
  (a) Basic and diluted EPS before Extraordinary items (not annualised) 2.58 2.94 2.88 8.04 7.67 11.04
  (b) Basic and diluted EPS after Extraordinary items (not annualised) 2.58 2.94 2.88 8.04 7.67 11.04
17 Public Shareholding            
  (a) Number of shares 1278103220 1278103220 1278103220 1278103220 1278103220 1278103220
  (b) % age of shareholding 15.50 15.50 15.50 15.50 15.50 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 6967361180 6967361180 6967361180 6967361180 6967361180
  - Percentage of share(as % of the total shareholding of promoter and promoter group) 100.00 100.00 100.00 100.00 100.00 100.00
  - Percentage of share(as % of the total share capital of the company) 84.50 84.50 84.50 84.50 84.50 84.50

REPORTING OF SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE-MONTH PERIOD ENDED 31st DECEMBER 2011

(Rupee/Lakh)
Sl.
No.
Particulars Quarter ended 31.12.2011 (Unaudited) Quarter ended 30.09.2011 (Unaudited) Quarter ended 31.12.2010 (Unaudited) Nine-Month Period ended 31.12.2011 (Unaudited) Nine-Month Period ended 31.12.2010 (Unaudited) Year ended 31.3.2011 (Audited)
1 2 3 4 5 6 7 8
1 Segment Revenue            
  - Generation 1557238 1565599 1347504 4571973 3946938 5506913
  - Others 3462 4319 4291 11397 12279 17174
  - Total 1560700 1569918 1351795 4583370 3959217 5524087
2 Segment Results (Profit before Tax and Interest)            
  - Generation 260568 313400 332962 850324 881631 1208217
  - Others (3231) 1294 2058 (772) 4253 5014
  - Total 257337 314694 335020 849552 885884 1213231
  Less            
  (i) Unallocated Interest and Finance Charges 44905 40127 32351 122464 106071 141973
  (ii) Other Unallocable expenditure net of unallocable income (43851) (51311) (38394) (139788) (99468) (133702)
  Total Profit before Tax 256283 325878 341063 866876 879281 1204960
3 Capital Employed (Segment Assets - Segment Liabilities)            
  - Generation 5697925 5222047 4230963 5697925 4230963 4526023
  - Others 4241 8611 2071 4241 2071 425
  - Un-allocated 1750095 2008557 2642783 1750095 2642783 2262777
  - Total 7452261 7239215 6875817 7452261 6875817 6789225

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, and also notified First and Second Amendment in May and June 2011. In line with 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 (TTPS). Beneficiaries are billed in accordance with the said provisional tariff orders except for TTPS where it is done on provisional basis and for National Capital Thermal Power Station - II where it is billed on final tariff order basis. The amount billed during the quarter and for the nine-month period ended 31st December 2011 on this basis are Rupee 15,67,591 lakh and Rupee 44,32,967 lakh respectively (Corresponding previous quarter and nine-month Rupee13,00,612 lakh and Rupee 37,66,927 lakh respectively).

(b) CERC has issued final tariff orders for some of the stations under the Regulations, 2009, which considers the projected year-wise additional capital expenditure for the tariff period 2009-14. Sales for these stations has been recognised, by truing up capital expenditure to arrive at the capacity charges. Sales for these stations has been recognised as Rupee 2,04,560 lakh for the quarter and Rupee 5,67,949 lakh for the nine-month period ended 31st December 2011 (Corresponding previous quarter and nine-month Rupee 1,41,715 lakh and Rupee 4,39,662 lakh respectively). For all other stations, pending determination of station-wise tariff by the CERC, sales have been provisionally recognized at Rupee13,80,616 lakh for the quarter and Rupee 39,05,781 lakh for the nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-month Rupee 11,45,070 lakh and Rupee 33,96,425 lakh respectively) on the basis of principles enunciated in the said Regulations, 2009 including the Amendments thereto.

(c) Sales include (-) Rupee 15,547 lakh for the quarter and Rupee 36,334 lakh for the nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-month Rupee 15,980 lakh and Rupee 38,036 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 nine-month period ended 31st December, 2011 and corresponding 'Provision for Tariff Adjustment' has been created to the extent of 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 40,724 lakh for the quarter and (-) Rupee 35,723 lakh for the nine-month period ended 31st December 2011(Corresponding previous quarter and nine-month Rupee 32,243 lakh and Rupee 37,273 lakh respectively) on account of income tax recoverable from customers as per Regulations, 2004. Sales also include Rupee 893 lakh for the quarter and Rupee2,680 lakh for the nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-month Rupee 2,879 lakh and Rupee 11,945 lakh respectively) 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 3,564 lakh for the quarter and Rupee 11,774 lakh for the nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-monthRupee 3,513 lakh and Rupee 11,228 lakh respectively).

(b) are lower by Rupee Nil for the quarter and Rupee 19,883 lakh for the nine-month period ended 31st December 2011 respectively on account of reversal of interest payable to beneficiaries as per APTEL order, consequent upon the favourable judgement of the Hon'ble Supreme Court of India, liability for which was created in earlier years.

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 709 lakh for the quarter and Rupee 2,308 lakh for the nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-month credit of Rupee 106 lakh and Rupee 139 lakh respectively considered in other income).

4. Current tax expense include Rupee (-) 31,434 lakh and Rupee 15,741 lakh for the quarter and nine-month period ended 31st December 2011 respectively (Corresponding previous quarter and nine-month Rupee 23,678 lakh) related to earlier years.

5. Consequent to the demand made by the Ministry of Petroleum and Natural Gas to the consortium partners towards unfinished minimum work programme cost in respect of exploration block AA-ONN-2003/2, provision of Rupee 4,038 lakh has been made during the quarter and nine-month period ended 31st December 2011. However, the Company has sought waiver of the above claim citing force-majeure conditions at site leading to discontinuation of exploratory activities.

6. An amount of Rupee 77,195 lakh (Rupee 74,882 lakh upto 31st March 2011) has been accounted as 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 contractors/vendors of various packages for this project will be compensated in full by the GOI. Since, management is confident of recovery of the cost incurred, no provision is made.

7. During the quarter, one unit of 660 MW at Sipat project of the Company has been declared commercial w.e.f 1st October 2011.

8. The Board of Directors has recommended interim dividend of Rupee 3.50 per share (face value Rupee 10/-each) for the financial year 2011-12 in their meeting held on 27th January 2012.

9. Information on investors complaints pursuant to clause 41 of Listing Agreements for the quarter ended 31st December 2011:

Sl.No. Opening Balance Additions Disposals Closing Balance
No. of complaints 3 1226 1227 2

10. 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 27th January 2012.

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

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

For and on behalf of the Board of Directors

Place: New Delhi
Date: 27th January 2012

(A. K. SINGHAL)
DIRECTOR (FINANCE)