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« Back STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND HALF-YEAR ENDED 30TH SEPTEMBER 2016

 
(Rupee in Crore)
Sl. No.Particulars

Quarter ended 30.09.2016 (Unaudited)

Quarter ended 30.06.2016 (Unaudited)
Quarter ended 30.09.2015
(Unaudited & not subjected to review)
(refer note 3)
Half year ended 30.09.2016 (Unaudited)Half year ended
30.09.2015
(Unaudited & not
subjected to review refer note 3)
1234567
1Income from operations     
 (a) Gross sales19241.4718939.8117748.2338181.2834758.58
 (b) Other operating income156.47123.10191.73279.57274.36
 Total income from operations (a+b)19397.9419062.9117939.9638460.8535032.94
2Expenses     
 (a) Fuel cost11912.9711632.3711540.8323545.3423049.97
 (b) Employee benefits expense848.31998.17899.181846.481800.24
 (c) Depreciation and amortisation expense1434.151395.191288.722829.342475.02
 (d) Other expenses1240.851261.141384.572501.992545.94
 Total expenses (a+b+c+d)15436.2815286.8715113.3030723.1529871.17
3Profit from operations before other income, finance costs and exceptional items (1-2)3961.663776.042826.667737.705161.77
4Other income190.62157.89278.20348.51519.13
5Profit from ordinary activities before finance costs and exceptional items (3+4)4152.283933.933104.868086.215680.90
6Finance costs889.83900.42826.521790.251578.01
7Profit from ordinary activities after finance costs but before exceptional items (5-6)3262.453033.512278.346295.964102.89
8Exceptional items-----
9Profit from ordinary activities before tax (7+8)3262.453033.512278.346295.964102.89
10Regulatory income/(expense)(4.43)3.3134.34(1.12)54.46
11Profit from ordinary activities before tax  (9+10)3258.023036.822312.686294.844157.35
12Tax expense:     
 (a) Current tax (refer note 7)686.51647.32(736.36)1333.83(1168.38)
 (b) Tax expense/(saving) pertaining to rate regulated activities(0.94)0.7011.89(0.24)18.85
 (c) Deferred tax395.59350.8618.94746.45107.97
 (d) Less: Deferred asset for deferred tax liability319.11300.6721.02619.78109.23
 Total tax expense (a+b+c-d)762.05698.21(726.55)1460.26(1150.79)
13Net profit from ordinary activities after tax (11-12)2495.972338.613039.234834.585308.14
14Extraordinary items (net of tax)-----
15Net profit for the period (13-14)2495.972338.613039.234834.585308.14
16Other comprehensive income (net of tax)(26.50)1.38(22.88)(25.12)(49.00)
17Total comprehensive income (15+16)2469.472339.993016.354809.465259.14
18Paid-up equity share capital  (Face value of share Rupee 10/- each)8245.468245.468245.468245.468245.46
19Paid-up debt capital*   97290.3886790.87
20Debenture redemption reserve   4413.983438.85
21(i)Earnings per share (before extraordinary items) - (of Rupee 10/- each) (not annualised) (in Rupee):     
 (a) Basic3.032.833.695.866.44
 (b) Diluted3.032.833.695.866.44
21(ii)Earnings per share (after extraordinary items) - (of Rupee 10/- each) (not annualised) (in Rupee):     
 (a) Basic3.032.833.695.866.44
 (b) Diluted3.032.833.695.866.44
21(iii)Earnings per share (for continuing operations) - (of Rupee 10/- each) (not annualised) (in Rupee):     
 (a) Basic3.032.833.695.866.44
 (b) Diluted3.032.833.695.866.44
22Debt equity ratio   1.030.99
23Debt service coverage ratio
(DSCR)
   2.101.85
24Interest service coverage ratio
(ISCR)
   6.165.27

* Comprises long term debts 

See accompanying notes to the financial results

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rupee in Crore)
Sl.No.ParticularsAs at 30.09.2016
(Unaudited)
AASSETS 
1Non-current assets 
 (a) Property, plant & equipment94682.88
 (b) Capital work-in-progress72037.93
 (c) Intangible assets294.44
 (d) Intangible assets under development164.83
 (e) Financial assets 
       - Investments8682.29
      - Trade receivables53.39
      - Loans399.27
     - Other financial assets1143.30
 (f) Other non-current assets18519.97
 Sub-total - Non-current assets195978.30
2Current assets 
 (a) Inventories5677.49
 (b) Financial assets 
       - Trade receivables9990.98
       - Cash and cash equivalents876.77
      - Other bank balances2593.81
      - Loans236.91
      - Other financial assets5446.07
 (c) Other current assets3991.65
 Sub-total - Current assets28813.68
 TOTAL - ASSETS224791.98
BEQUITY AND LIABILITIES 
1Equity 
 (a) Equity share capital8245.46
 (b) Other equity86223.71
 Sub-total - Equity94469.17
2Liabilities 
(i)Non-current liabilities 
 (a) Financial liabilities 
 - Borrowings90215.88
 - Trade payables10.82
 - Other financial liabilities2348.96
 (b) Provisions447.75
 (c) Deferred tax liabilities (net)1278.88
 (d) Other non-current liabilities 49.68
 Sub-total-Non-Current liabilities94351.97
(ii)Current liabilities 
 (a) Financial liabilities 
 - Borrowings1250.78
 - Trade payables4121.04
 - Other financial liabilities19515.65
 (b) Other current liabilities 1003.66
 (c) Provisions7131.59
 (d) Current tax liabilities (net)151.30
 Sub-total-Current liabilities33174.02
3Deferred Revenue2498.88
4Regulatory deferral account credit balances297.94
 TOTAL - EQUITY AND LIABILITIES224791.98

SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND HALF-YEAR ENDED 30TH SEPTEMBER 2016

(Rupee in Crore)
Sl.No.ParticularsQuarter ended
30.09.2016 
(Unaudited)
Quarter ended 30.06.2016
(Unaudited)
Quarter ended
30.09.2015 
(Unaudited)
Half year ended
30.09.2016
(Unaudited)
Half year ended
30.09.2015
(Unaudited & not
subjected to review)
(refer note 3)
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1Segment revenue     
 - Generation19491.5419116.2017993.5038607.7435120.31
 - Others43.5534.6726.9978.2250.74
 - Un-allocated53.4769.93197.67123.40381.02
 - Total19588.5619220.8018218.1638809.3635552.07
2Segment results (Profit before tax and interest)     
 - Generation4411.734163.213242.768574.945909.98
 - Others(82.29)8.67(26.89)(73.62)(28.59)
 Total4329.444171.883215.878501.325881.39
 Less     
 (i) Unallocated finance costs889.83900.42826.521790.251578.01
 (ii) Other unallocable expenditure net of unallocable income181.59234.6476.67416.23146.03
 Profit before tax3258.023036.822312.686294.844157.35
3Segment assets     
 - Generation122594.24122778.97108000.62122594.24108000.62
 - Others3050.852587.011920.923050.851920.92
 - Un-allocated99146.8993852.4493379.2699146.8993379.26
 Total224791.98219218.42203300.80224791.98203300.80
4Segment liabilities     
 - Generation13549.1614467.3313587.1013549.1613587.10
 - Others1701.171790.081322.161701.171322.16
 - Un-allocated115072.48109255.95100953.48115072.48100953.48
 - Total130322.81125513.36115862.74130322.81115862.74
The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

Notes:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in the meeting held on 28th October 2016 and approved by the Board of Directors in the meeting held on the same day.

2. The statutory auditors of the Company have carried out the limited review of the financial results for the quarter and half year ended 30th September 2016 as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. The Company adopted Ind AS from 1st April 2016 and accordingly the financial results are prepared in compliance with Ind AS pursuant to the Notification of Ministry of Corporate Affairs (MCA) dated 16th February 2016. The comparative figures for the quarter and half-year ended 30th September 2015 have been restated by the Management as per Ind AS but have not been subject to limited review or audit. However, the Management has exercised necessary due diligence to ensure that the financial results provide a true and fair view of the Company's affairs.

4. The unaudited standalone financial statements do not include figures for the previous year ended 31st March 2016 as per SEBI's Circular No. CIR/CFD/FAC/2016 dated 5th July 2016.

5. Reconciliation of net profit as reported in previous GAAP to Ind AS:

(Rupee in Crore)
ParticularsQuarter ended 30.09.2015Half-Year ended 30.09.2015
Profit after tax as reported under previous GAAP2898.285033.63
Add/(less) adjustments for Ind AS:  
Actuarial loss on defined benefit plans recognised in Other comprehensive income11.9123.39
Capitalisation of major overhaul & spares119.25248.73
Depreciation and amortization 36.3388.34
Recognition of financial assets/liabilities at amortised cost(11.12)(30.24)
Impact of embedded leases(4.68)(9.77)
Provision of rebate to customers(10.74)(45.94)
Net Profit as per Ind AS3,039.235,308.14
Other Comprehensive Income (net of tax):  
Actuarial loss on defined benefit plans (11.91)(23.39)
Fair valuation of investments (10.97)(25.61)
Total comprehensive income as reported under Ind AS3,016.355,259.14

6(a). The CERC notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). The CERC has issued tariff orders for ten stations for the period 2014-19 and accordingly beneficiaries are billed based on tariff orders. Pending issue of provisional/final tariff orders w.e.f. 1st April 2014 for balance stations, beneficiaries are billed in accordance with the tariff approved and applicable as on 31st March 2014 and as provided in the Regulations 2014. The energy charges in respect of the coal based stations are provisionally billed based on the GCV 'as received' measured after the secondary crusher. The amount provisionally billed for the quarter and half-year ended 30th September 2016 is Rupee 18,769.66 crore and Rupee  37,137.52 crore respectively (previous quarter and half-year Rupee 18,592.13 crore and Rupee 36,305.61 crore).

(b). The Company has filed a writ petition before the Hon'ble Delhi High Court contesting certain provisions of the Tariff Regulations, 2014. As per directions from the Hon'ble High Court on the issue of point of sampling for measurement of GCV of coal ‘as received’, CERC has issued an order dated 25th January 2016 (subject to final decision of the Hon'ble High Court) that samples for measurement of coal on ‘as received’ basis should be collected from loaded wagons at the generating stations. The Company's review petition before the CERC in respect of the above order has been dismissed vide their order dated 30th June 2016. Pending final decision of the Hon'ble Delhi High Court, in line with the CERC order, necessary arrangements have been made for the measurement of GCV from wagon top samples at the unloading end w.e.f 1st October 2016 at all coal based stations. 

Sales  for the quarter and half-year ended 30th September 2016 have been provisionally recognized at Rupee 18,957.46 crore and Rupee 37,744.22 crore respectively (previous quarter and half-year Rupee 18,233.53 crore and Rupee 35,973.17 crore) on the basis of said Regulations 2014, wherein energy charges included in sales, in respect of the coal based stations have been recognized based on the GCV ‘as received’ measured after secondary crusher. 

In the absence of suitable measurement mechanism of comparable GCV, the financial impact, if any, of the difference between the GCV ‘as received’ measured after collection of samples from loaded wagons at the generating stations and that of GCV ‘as received’ measured after secondary crusher, cannot be quantified. Considering the distance between both the measuring points, which are generally within the station and are at a distance less than one KM from the unloading point of the wagons, the above difference will not be material.

(c). Sales for the quarter and half-year ended 30th September 2016 include Rupee 132.97 crore and Rupee 97.79 crore respectively (previous quarter and half-year Rupee 274.47 crore and Rupee 231.45 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

(d). Sales for the quarter and half-year ended 30th September 2016 includes Rupee Nil (previous quarter and half-year (-) Rupee 901.68 crore and (-) Rupee 1,693.65 crore) on account of income-tax payable to the beneficiaries as per Regulations, 2004. Sales for the quarter and half-year ended 30th September 2016 also include Rupee 12.32 crore and Rupee 24.63 crore respectively (previous quarter and half-year Rupee 12.75 crore and Rupee 25.49 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.

7. Provision for current tax for the quarter and half-year ended 30th September 2016 includes Rupee Nil, being tax related to earlier years (previous quarter and half-year (-) Rupee 1,197.20 crore and (-) Rupee 2,039.02 crore). 

8. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's ongoing project was challenged before the National Green Tribunal (NGT). The NGT disposed the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgment of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. Aggregate cost incurred on the project upto 30th September 2016 is Rupee 13,170.32  crore (Rupee 11,774.77 crore as at 31st March 2016). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

9.The Company is executing a hydro power project in the state of Uttarakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttarakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7th May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 30th September 2016 is Rupee 158.99 crore (Rupee 157.31 crore as at 31st March 2016). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

10. Other financial assets - Non current as at 30th September 2016 include claims recoverable of Rupee 611.42 crore (Rupee 469.73 crore as at 31st March 2016) towards the cost incurred in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI which includes Rupee 325.98 crore (Rupee 185.41 crore as at 31st March 2016) in respect of arbitration awards challenged/being challenged by the Company before the Hon'ble High Court. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

11. During the quarter, solar units of 50 MW at NP Kunta Ultra Mega Solar Power Project at Anantapuram have been declared commercial w.e.f. 10th August 2016.

12. During the quarter, the Company has paid final dividend of Rupee 1.75 per share (face value of Rupee 10/- each) for the financial year 2015-16.

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

14. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on fixed assets through English/Equitable mortgage as well as hypothecation of  movable assets of the Company.

15. Figures for the previous periods have been regrouped/reclassified wherever necessary, to conform to current period's classification.

For and on behalf of the Board of Directors

Place: New Delhi
Date: 28th October, 2016

(K. BISWAL)
DIRECTOR (FINANCE)