The company reported Q3FY14 net sales of Rs 2,116.04 crore, below analyst estimates of Rs 2,176.4 crore. Sales fell 9.15% y-o-y. Net profit for the quarter ended December 31 was Rs 210 crore, a fall of 32.6% y-o-y. Debt equity ratio as on December 31 stood at 1.49 times. The depreciation in the rupee did not affect the companys financials as it has hedged all its forex liabilities.
Demand for power has been rather subdued as a result of which some of our units have been backed up and there is an impairment of Rs 54 crore of our South African asset that we have taken in this quarter, which also had an impact on PAT, CEO and joint MD Sanjay Sagar said. Ratnagiri was hit by the backing down in Maharashtra, there seems to be no demand of power in the state, he added.
The company will not expand its Barmer project as the state government clearance is devoid of a fuel source, either captive or a linkage.
In terms of generation, the companys Vijaynagar unit had a plant load factor (PLF) of 99%, the Ratnagiri project had an average PLF of 68% and Barmer had a deemed PLF of 81%.
The company, which does not depend on supplies from Coal India and sources imported coal and captive lignite for operating 66% of its capacity, said it incurred a fuel cost of Rs 1,066 crore in Q3FY14, a rise of 2% y-o-y, mainly due to an increase in the landed cost of fuel.
The company will not expand its Barmer project as the state government clearance is devoid of a fuel source.