GMR Infrastructure jumped 9.09% to Rs 14.52 AT 12:45 IST on BSE after the revision of power tariff for GMR Kamalanga Energy following an order passed by CERC to boost GMT group's EBITDA by Rs 120 crore going forward.
The announcement was made during market hours today, 18 November 2015.
Meanwhile, the S&P BSE Sensex was down 81.22 points or 0.31% at 25,783.25.
Huge volumes were traded on the counter. On BSE, so far 45.43 lakh shares were traded in the counter as against average daily volume of 13.42 lakh shares in the past one quarter.
The stock hit a high of Rs 14.77 and low of Rs 13.40 so far during the day. The stock had hit 52-week high of Rs 20.50 on 19 November 2014. The stock had hit a record low of Rs 9.58 on 4 September 2015.
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The stock had underperformed the market over the past one month till 17 November 2015, falling 3.55% compared with Sensex's 4.96% fall. The scrip had, however, outperformed the market in past one quarter, rising 2.94% as against Sensex's 7.22% drop.
The mid-cap infrastructure company has equity capital of Rs 603.59 crore. Face value per share is Re 1.
GMR Group announced revision of power tariff for GMR Kamalanga Energy, a special purpose vehicle (SPV) of GMR Energy following an order passed by Central Electricity Regulatory Commission (CERC) on 16 November 2015.
GMR Kamalanga had submitted an application to CERC for determination of the tariff under the power purchase agreement (PPA). Pending order of CERC, GMR Kamalanga was being reimbursed at Rs 2.75 per unit of total tariff. Consequent to the CERC order GMR Kamlanga will be entitled for a price of the year ending 31 March 2015 (FY 2014) which shall be approximately Rs 3.97 per unit and Rs 3.4 per unit thereafter.
This long pending order would entitle GMR Group to collect all the arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward the order will help improve company's EBITDA (earnings before interest, taxes, depreciation and amortization) by Rs 120 crore.
Around 85% of plant's power generation capacity is tied up through long term power purchase agreement (PPA) which Includes PPA with GRDICO, Orissa for off taking 25% of the power generated from the power station. GMR Kamalanga Energy owns and operates 3x350 megawatts (MW) coal based thermal power plant at Kamalanga village, in Dhenkanal district, Odisha. Its unit 1 was commissioned in April 2013, unit 2 in November 2013 and unit 3 in March 2014. The Union power ministry has granted it the mega power project status.
Commenting on the development Mr. GBS Raju, Business Chairman- Energy, said that it is another reaffirmation of the Government's and Regulator's resolve to solve the problems of the Power sector. The company is pleased to note that CERC has passed this tariff order which will go a long way improving the profitability and liquidity of the Group.
GMR Infrastructure reported consolidated net loss of Rs 398.67 crore in Q2 September 2015, lower than net loss of Rs 609.86 crore in Q2 September 2014. Consolidated total net sales rose 16.5% to Rs 3070.75 crore in Q2 September 2015 over Q2 September 2014.
GMR Group is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure. The group has fifteen power generation projects of which ten are operational and five are under development; nine operating road assets and a double rail track line between Mughalsarai-New Bhaupur (Kanpur) of Eastern Dedicated Freight Corridor under development.
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