2QFY17 normalised EBITDA at `10.7 billion (-5% y-y) was 7% above our forecast, but marginally below consensus. While normalised pre-tax profit was in line with our forecast, normalized PAT at `2 billion (-32% y-y) was 24%/35% below our/consensus forecast. Reported PAT at `2.7 billion was 5% above our forecast, but 10% below consensus.
Reported Ebitda was boosted by:  `750mn late payment surcharge (LPS) received by Sasan for prior period (based on orders relating to commercial start-up date of the first unit);  sharply lower opex as RPWR capitalized expenditure on major overhauls as per the transition to IND-AS (unlike its peers which accounted for this in 1QFY17 itself).
Normalised Ebitda beat was neutralised at PBT level as net interest expenditure was 14% higher vs. our forecast, largely on account of `350-400 million MTM loss on hedging instruments. Normalised PAT miss is attributed to significant deferred tax provisioning (`420mn) taking the effective tax rate on reported earnings to 31%.
RPWR’s normalised 1HFY17 revenues/EBITDA/PAT were xx%/yy%/zz% of our FY17F revenues/ Ebitda/PAT respectively; we are reviewing earnings estimates and TP for the stock. The stock trades at FY18F RoE of 6%, P/B of 0.5x (BVPS=`81.6, RoE = 6.1%) and P/E at 8.9x (EPS = `4.9).