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Tata Power in focus after Q1 results

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Last Updated : Aug 09 2013 | 11:55 PM IST

Tata Power Company's consolidated net profit fell 66.09% to Rs 145.93 crore on 22.98% growth in total income from operations to Rs 7316.47 crore in Q1 June 2012 over Q1 June 2011. Profit declined mainly due to lower profit in Coal Companies owing to lower price realisation and higher cost of production, higher interest and depreciation cost due to commissioning of Mundra and Maithon units and reversal of revenues due to change in effective date of MYT regulations in Mumbai.

On consolidated segment-wise performance for the quarter, revenues from power business has increased by 30% at Rs. 4824.01 crore as compared to Rs. 3720.30 crore in the corresponding quarter last year. Revenue from Coal Business was up by 14% at Rs. 2265.04 crore as compared to Rs. 1990.69 crore in the corresponding period last year. PBIT from Power Business was at Rs. 578.24 crore as against Rs. 627.0 crore in the previous quarter last year, a reduction Rs. 155 crore mainly due to shifting of MYT regime to 2012-13 onwards in Mumbai. PBIT from Coal Business stood at Rs. 257.61 crore as compared to Rs. 750.07 crore reported in the corresponding quarter last year. Profits were lower in Coal Companies due to lower price realization and higher cost of production. Last year's PBIT was after capitalization of Rs. 210.65 crore of deferred stripping costs. From 1st Jan 2012 no capitalization of deferred stripping cost is being done.

Commenting on the Company's performance, Anil Sardana, Managing Director, Tata Power said, "During first quarter of FY13, the Company reported revenue growth of about 20% and profit growth of about 10% which is highly satisfying. All our projects and subsidiaries by and large have performed well. Tata Power's generation capacity crossed 6000 MW with commissioning of 800 MW unit 2 of the Mundra UMPP, reinforcing our position as the largest integrated power company in India. The Company crossed 11000 MWh of generation units at Mithapur Solar plant which is a significant milestone that demonstrates efficiency and state of art technology used at the plant. Our Coal Companies posted lower realization due to global economic slowdown and falling coal prices. By signing the coal supply agreement with PT Antang Gunung Meratus, we have taken proactive steps to ensure imported coal supply for our upcoming power projects to be developed for next 5 years."

Tata Motors and Ranbaxy Laboratories unveil quarterly results today, 9 August 2012.

Cairn India announced that Rahul Dhir has decided to step down as Managing Director and Chief Executive Officer of the company with effect from 31 August, 2012 to pursue his entrepreneurial interests. The search for Dhir's successor is underway and an announcement is expected soon, Cairn India said in a statement. During this intervening period, the board has appointed Mr. P. Elango, Director - Strategy and Business Services and a member of Cairn India's Executive Committee, as the Interim CEO. Mr. Elango, an experienced oil & gas veteran has been with Cairn for over 15 years and has worked competently alongside Mr. Dhir for the past six years.

On the eve of this announcement, Dhir said, "It's been a privilege to be part of Cairn India's remarkable growth story over the past six years. We have achieved all major milestones set out at the time of the IPO. With the completion of Vedanta's acquisition, Cairn India's exceptional organization and unique asset base are well placed to continue to deliver sustainable growth and value for our Nation and all our stakeholders. This is the right transition point for me to pursue my entrepreneurial interests. I take this opportunity to thank all my colleagues at Cairn India, and our Board for their contribution and support in creating this amazing company".

Navin Agarwal, Chairman of Cairn India, said: "The success of Cairn India, under Rahul's leadership has been achieved through building a globally competitive team, ensuring a strong focus on disciplined execution, sustaining low cost and safe operations and innovative application of technology. These strategic pillars will continue to remain core to Cairn India's operating philosophy as it enters the next phase of its growth. We thank Rahul for his valuable contribution and wish him success in his future endeavours. Cairn India is well poised to continue its focus on exploration, and on augmenting our current production from Rajasthan and focus on growth in India and beyond".

Jaypee Infratech will be watched on reports the 165-km long Yamuna Expressway connecting Greater Noida with Agra will be inaugurated today, 9 August 2012, by Uttar Pradesh Chief Minister Akhilesh Yadav. According to reports, the toll road will be thrown open to the public from 4 pm today after the inauguration ceremony. According to the terms of the concession agreement, Jaypee Infratech is entitled to collect tolls at rates fixed by the Uttar Pradesh Government for 36 years. In addition, the company will receive 6,175 acres of land across five different sites at the Government's cost of acquisition, paying only an annual lease rent of Rs 41 per acre.

Steel Authority of India (Sail) turns ex-dividend today, 9 August 2012, for final dividend of 80 paise per share for the year ended 31 March 2012.

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Sun TV Network turns ex-dividend today, 9 August 2012, for interim dividend of Rs 2.50 per share for the year ending 31 March 2012.

Tata Global Beverages turns ex-dividend today, 9 August 2012 for dividend of Rs 2.15 per share for the year ended 31 March 2012. Before turning ex-dividend, the stock offered a dividend yield of 1.65% based on the closing price of Rs 130 on Wednesday, 8 August 2012.

Ratings firm Moody's has reportedly downgraded the rating of Tata Steel UK Holdings by one notch stating the operating environment of the European steel industry will weaken further in the coming months. Tata Steel has now been given B3 rating by the rating agency, which said in a statement that the steel maker's debt coverage metrics are no longer consistent with its previous rating B2. B3 rating implies that adverse business and economic conditions are likely to impair a company's capacity in meeting its financial commitments. However, the global rating agency has kept the outlook of Tata Steel's UK venture unchanged at negative. Besides, it has also lowered the outlook for Tata Steel India to negative from stable and downgraded the UK operation's 3.4 billion euro term loan facility and 690 million euro revolving credit facility to B3 from B2.

On a consolidated basis, Pantaloon Retail (India)'s net profit fell 77.6% to Rs 22.71 crore on 6.5% increase in net sales to Rs 3552.45 crore in Q4 June 2012 over Q4 June 2011.

Abbott India net profit rose 170.29% to Rs 46.22 crore in the quarter ended June 2012 as against Rs 17.10 crore during the previous quarter ended June 2011. Sales rose 14.60% to Rs 402.83 crore in the quarter ended June 2012 as against Rs 351.50 crore during the previous quarter ended June 2011.

Emami net profit rose 24.12% to Rs 49.45 crore in the quarter ended June 2012 as against Rs 39.84 crore during the previous quarter ended June 2011. Sales rose 16.43% to Rs 331.02 crore in the quarter ended June 2012 as against Rs 284.30 crore during the previous quarter ended June 2011.

Power Finance Corporation net profit rose 41.63% to Rs 971.88 crore in the quarter ended June 2012 as against Rs 686.19 crore during the previous quarter ended June 2011. Sales rose 36.25% to Rs 3943.21 crore in the quarter ended June 2012 as against Rs 2894.19 crore during the previous quarter ended June 2011.

Speciality Restaurants has opened a new "Mainland China" restaurant in Pune on 8 August 2012. Accordingly, as of 8 August 2012, the total number of restaurants (including franchise restaurants) and confectionaries of the company are 77 and 12 respectively.

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First Published: Aug 09 2012 | 8:50 AM IST

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