Tata Power Company Limited (Tata Power) has reported revenues of INR17.8 billion for the third quarter of 2009, up 25.18%, compared with the revenues of INR14.2 billion in the year-ago quarter. It has also reported profit after tax of INR1.15 billion for the third quarter of 2009, compared with the profit after tax of INR1.97 billion in the year-ago quarter.
Year to date third quarter fiscal 2009 Revenues up by 34.58 % at INR57.61 billion and profit after tax at INR5.67 billion
Completed Synchronization of 250 megawatt (MW) Unit 8 expansion project at Trombay
Signed a memorandum of understanding (MoU) with Gujarat Government to explore the possibility of setting up of Geothermal and Solar power plant in the State of Gujarat
Signed Joint Venture agreement with Indian Oil Corporation to set up a coal based power plant in Orissa
Commissioned 21.6 MW of additional wind capacity in Gujarat and Karnataka
Commissioned the second Unit of 45 MW at Haldia
Current operations continue to be robust. Sales up by 2.68% at 3711 MUs. The company’s Hydro Power Station recorded higher generation of 39 MUs up by 14.98%. Belgaum Power Station also reported increase in generation to 129 MUs due to higher demand by KPTCL.
Regulatory adjustments which used to be made on an annual basis in the fourth quarter are now being made on a provisional basis every quarter. Had the changed accounting method been followed last year, the Profits would have been lower by INR650 million for third quarter fiscal 2008.
Further, Interest at INR951.5 million (Previous year INR385.5 million) was higher by 146.82% over previous year.
While the Interest expenses increased in this quarter by INR566 million, INR113.2 million was earned as interest income resulting in net increase in interest of INR452.8 million of which INR64.1 million is due to interest resets (of which INR46.6 million is a pass through), INR63.4 million is due to new units commissioned and the balance INR325.3 million due to borrowings to fund our SPVs and equity for capex requirements.
Highlights Nine Months Fiscal 2009:
Tata Power Revenues were up by 34.58 % to INR57.61 billion as against INR42.81 billion in the same period last year.
Profit after tax for the period stood at INR5.67 billion as against INR6.44 billion in the corresponding period last year and was not comparable owing to the change in the accounting method that the company undertook this year.
250 MW Trombay Unit 8: The company announced the synchronization the 250 MW Unit 8 with the grid and rest of the generation units at the Trombay Thermal Power Plant in Chembur, Mumbai in the presence of Shri Jairam Ramesh, Hon’ble Union Minister of State for Power, Government of India and Shri Sunil Tatkare, Hon’ble Minister for Energy, Government of Maharashtra. The 250 MW Unit 8 is to operate on imported coal and will enhance the current installed capacity of 1350 MW at Trombay Thermal Power Station. The commissioning of the Unit is scheduled to happen in next 4-6 weeks and will help bridge the gap between the ever increasing demand and supply of power.
MoU with Gujarat Government to set up Geothermal and Solar Power Plants: During the quarter, the company signed an MoU with Government of Gujarat to explore the possibility of setting up a 5 MW Geothermal Power plant in phase-I, at a suitable location in Gujarat. The company also signed a MoU for developing a 5 MW solar power plant in Gujarat.
Joint-Venture agreement with IOC: Tata Power signed a joint venture agreement with Indian Oil Corporation for establishing a coal-based power plant in Orissa. The joint venture will meet the captive requirement of IOCL Paradip Refinery and Petrochemicals complex. Tata Power will hold 74 % equity and IOCL will hold 26% equity.
4000 MW, Mundra Ultra Mega Power Project: The Ultra Mega Power Project (UMPP) at Mundra, Gujarat is progressing as per schedule. Structural erection is in progress for two boiler units and civil work is progressing well at site, with over 2500 people already working on site. Coastal Gujarat Power Limited completed all pre-disbursement conditions and received its first disbursement of loans in this quarter on contracted terms. Financing of the Mundra UMPP was also voted as Power Deal of the Year by Power Finance International (PFI) in their year book 2009. PFI owned by ReuteINRThomson is a prestigious publication followed by the industry as a benchmark for project finance deals.
1050 MW Maithon Power Project: For the 1050 MW Maithon project, Work on both the Units is progressing as per schedule and over 21% work is completed. Ordering for most of the Packages is complete.
Wind Farm Projects: 21.6 MW of additional capacity was commissioned in this quarter in Gujarat and Karnataka. With this, the total installed capacity of Wind is now 124 MW.
120 MW Power Project at Haldia: First Unit of 45 MW of the Haldia Project was commissioned in August 2008. The second Unit has been commissioned during this quarter in December 2008. The third unit of 30 MW is expected to be synchronized by the end of February 2009.
Captive Power Projects for Tata Steel: The 120 MW Power House 6 at Tata Steel Works, Jamshedpur is in advanced stages of completion and is expected to synchronize in February 2009 with commissioning expected in March 2009. The 120 MW Unit 5 at Jojobera is also progressing well and will be commissioned in the next financial year.
Tata Power Energy Club sensitized 10,000 students in 25 schools and 300 students have started measuring power at home. These 300 energy champions have in turn sensitized 20,000 Mumbai citizens as part of their secondary sensitization of ‘friends and neighbourhood’.
Commenting on the company’s performance, Prasad R Menon, managing director, Tata Power, said: “Our current operations continue to be robust and our revenues have been higher in all the power businesses. All our generating assets at Trombay, Hydros, Jojobera and Belgaum have performed well and our major projects under implementation are on track. Financial closure has been achieved for both of our major projects at Mundra and Maithon and construction work at both sites is proceeding well. We have synchronized the 250 MW Unit at Trombay generating facility which will address the growing need and enhance the current installed capacity of 1350 MW. The Haldia and Power House 6 projects are close to completion, with two units commissioned already at Haldia.”