Q3 Presentation FY 2012-13

AGENDAAGENDAAGENDAAGENDA

SECTOR UPDATESECTOR UPDATE

PERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTS

FINANCIAL RESULTSFINANCIAL RESULTS

PROJECTS UPDATEPROJECTS UPDATE

2

SECTOR UPDATESECTOR UPDATESECTOR UPDATESECTOR UPDATE

ECONOMIC SCENARIOECONOMIC SCENARIOECONOMIC SCENARIOECONOMIC SCENARIO

Policy measures by majordeveloped economies apparentlybrought stability 6.0%

8.0%

10.0%

7.80%

8.00%

8.20%

g y

Early signs of growth cyclebottoming out in major countries

0 0%

2.0%

4.0%

7.20%

7.40%

7.60%

g j

IIP contracted in November to(‐)0.1% after a 8.3% growth in ­4.0%

­2.0%

0.0%April May June July Aug Sep Oct Nov Dec

6.60%

6.80%

7.00%

October

Inflation apparently trending down – Dec’12 wpi inflation at 7.18% and core

IIP FY'13 (LHS) WPI Inflation FY'13 (RHS)

pp y g pinflation at 4.19% ‐ weakest after many months

Recent actions by the Government on policy front have the potential to improve

fi  f   li    b   h  G   ill d d    f l 

investment sentiment

Benefits from policy measures by the Government will depend on successful implementation

4Source: CSO, RBI

CAPACITY PROFILECAPACITY PROFILECAPACITY PROFILECAPACITY PROFILE

Total Installed Capacity Sector and Mode­wise as on 31st Dec  2012Total Installed Capacity Sector and Mode­wise as on 31st Dec, 2012

Sector Capacity (MW)* % Share

State Sector 86,716                      41.1%Central Sector 62,827                      29.8%Private Sector 61,409                      29.1%Total 210,952                   * including R.E.S

7,133

11,075

Hydro,  

R.E.S,  25,856 , 12%

Capacity Addition in MW

435 7531,888

3,076

797

3,144

Nuclear   

39,339 , 19%

435 539

State Sector Central Sector Private Sector Total

Q3FY'13 9MFY'13

Nuclear,  4,780 , 2%

Thermal,  140,976 , 67%

Source: CEA5

64% of the capacity addition is from the Private Sector64% of the capacity addition is from the Private Sector

DEMAND SUPPLY SCENARIODEMAND SUPPLY SCENARIODEMAND SUPPLY SCENARIODEMAND SUPPLY SCENARIO

Power Demand Supply Position Q3FY’13 (BU) Peak Demand and Peak Met  9MFY’13 (GW)Power Demand Supply Position Q3FY 13 (BU) Peak Demand and Peak Met  9MFY 13 (GW)

135

12315.1%

15.3%

120

140

160

14%

16%

18%

249

227

17.4%

14.8%250

300

16%

18%

20%

9.0%7.4%

8.9%

10.6%

7.6%7.8%

60

80

100

120

8%

10%

12%

8.4% 9.0%

10.0%11.5%

5 4%

11.4%

100

150

200

8%

10%

12%

14%

19

374046

17

313942

1.5%

4.1%

0

20

40

0%

2%

4%

6%

29

79 7071

27

576576

3.8%4.6%

9.0%5.4%

­

50

100

0%

2%

4%

6%

NR WR SR ER &NE All India

Peak Demand (GW) Peak Met (GW)

% Peak Shortage 9MFY13 % Peak Shortage 9MFY12

NR WR SR ER &NE All IndiaRequirement (BU) Availability (BU)

% Deficit Q3FY13 % Deficit Q3FY12

Demand grew at 4.2% to 249BU inQ3FY’13, Supply grew by 7.1% to227BU during the same period

Power Demand Supply Gap % Trend

8 9%

9.3%

8 9%

9.1%

8.2%

8.6%

8.9%

Consistent high Demand‐Supply gap

8.9%8.9%8.6%

7.6%

8.9%

6Source: CEAApril'12 June Aug Oct Dec

All India

API  COAL INDEX visAPI  COAL INDEX vis­­àà­­vis USvis US$:`$:` ­­ Indexed Indexed API  COAL INDEX visAPI  COAL INDEX vis­­àà­­vis USvis US$:`$:` ­­ Indexed Indexed 

120

130 API 4 Coal Index USD:Re

90

100

110

API4 Coal Index and US$:Re parity are monthly averages70

80

API4 Coal Index and US$:Re parity are monthly averages

60

Apr‐11

May‐11

Jun‐11

Jul‐1

1

Aug

‐11

Sep‐11

Oct‐11

Nov

‐11

Dec‐11

Jan‐12

Feb‐12

Mar‐12

Apr‐12

May‐12

Jun‐12

Jul‐1

2

Aug

‐12

Sep‐12

Oct‐12

Nov

‐12

Dec‐12

Month API 4 Coal Index USD:`Sep‐12 100                             100                     Oct‐12 97                                97                        

Thermal coal price increases during the latter half; Rupee Thermal coal price increases during the latter half; Rupee 

Nov‐12 99                                100                     Dec‐12 104                             100                     

Source:API4 Coal Index, RBI 7

Thermal coal price increases during the latter half; Rupee moves in a band

Thermal coal price increases during the latter half; Rupee moves in a band

PERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTSPERFORMANCE HIGHLIGHTS

8

OPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCEOPERATIONAL PERFORMANCE

Quarterly Plant­wise Net Generation (MU) ­ YoY

20% Net Generation  – 4,770MUNet Generation  – 4,770MU

9 months Plant­wise Net Generation (MU) ­ YoY

Net Generation  – 3,965MUNet Generation  – 3,965MU14,094MU57%

Ratnagiri Vij

Ratnagiri 2,132  Vijayanagar

Ratnagiri 6 524 

8,976MU

Vijayanagar 1,485 

Ratnagiri 1,921 

Vijayanagar 1,789 

Vijayanagar 4,133 

Ratnagiri 4,241 

Vijayanagar 5,285 

 6,524 

Barmer 558 

Barmer 849  Barmer

 603 

Barmer 2,285 

 558 

Q3 FY2012 Q3 FY2013

 603 

9M FY2012 9M FY2013

Vijayanagar Barmer Ratnagiri

PLF (Q3 FY 2013) 102% 81% 88%

9

PLF (Q3 FY 2013) 102% 81% 88%

PLF (Q3 FY 2012) 85% 74% 83%

SALE OF POWERSALE OF POWERSALE OF POWERSALE OF POWER

Sales Mix (MU)

13,848

Sales Mix (MU)

54%

31%

47%

4,880

8,964

2,752MU

6,533MU

15%

66% 54%

69% 53%34% 46%

4,235

4,880

1,441MU*

2 794MU

2,264MU*

2,616MU6,212MU

7,315MU

Q3 FY2012 Q3 FY2013 9M FY2012 9M FY2013Short Term Sales Long Term Sales

66% 54%2,794MU

* Including power conversion of 221MU (257MU previous quarter)

,

* Including power conversion of 221MU (257MU previous quarter)

Q3 FY 2012 Q3 FY 2013 9M FY 2012 9M FY 2013

Average Realisation 3.94 4.27 4.12 4.18

Realisation `/ kwh

10

FINANCIAL RESULTSFINANCIAL RESULTSFINANCIAL RESULTSFINANCIAL RESULTS

CONSOLIDATED RESULTSCONSOLIDATED RESULTSCONSOLIDATED RESULTSCONSOLIDATED RESULTS

Turnover (` Crores) 4,158 6,785  (63%   )

9MFY2013Q3FY2013

1,797 2,395 (33%   )

9MFY2012Q3FY2012

EBITDA (` Crores))) 982 2,149 (119%   )378 867 (129%   )

EBITDA (%) 24% 32%21% 36%

Interest (` Crores)) 484 707

Depreciation (` Crores) 352 487

199 236

138 157 Depreciation (` Crores) 352 487

PBT (` Crores) (79) 754

138 157

(97) 412

PAT (` Crores) (55) 568(83) 311

EPS (`) (0.34) 3.46

12

(0.50) 1.89

CONSOLIDATED FINANCIAL HIGHLIGHTSCONSOLIDATED FINANCIAL HIGHLIGHTSCONSOLIDATED FINANCIAL HIGHLIGHTSCONSOLIDATED FINANCIAL HIGHLIGHTS

N t W th (` C ) 5 611 6 269

31st Dec 201231st Dec 2011

Net Worth (` Crores) 5,611 6,269

Debt (` Crores) 9 912 10 158Debt (` Crores) 9,912 10,158

Net Fixed Assets (` Crores) @

15,213 15,437@

Debt Equity Ratio (times) 1.77 1.62

Weighted Average Cost of Debt

11.21% 11.15%

@Including CWIP and Capital Advances

13

FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS -- CONSOLIDATEDCONSOLIDATEDFINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS -- CONSOLIDATEDCONSOLIDATED

Particulars Q3FY’13(` crores)

% Inc Remarks

Revenue from Operations • Increase in Sales ‐ higher generation; p‐ Sale of Power‐ Transmission‐ Power Traded

2,01928261

27%28%240%

g g ;higher merchant tariff & includes power conversion of  `29 crs (PY `33 crs)

• Higher Transmission Revenue since Jaigad‐Power Traded‐ Sale of Coal

26121

240%‐66%

Karad line was commissioned at the end of Q3FY12

• Higher Trading Revenue due to increased third party sales

Total Income  2,329 33%third party sales

• Reduction in coal outputOther Operating Income‐ O&M Fees‐ Others

306

70% • Higher O&M Fees from increased capacity under O&M

TOTAL 2,365 34%

14

3 0006 000

CONSOLIDATED FINANCIAL TRENDS CONSOLIDATED FINANCIAL TRENDS CONSOLIDATED FINANCIAL TRENDS CONSOLIDATED FINANCIAL TRENDS

2,000

2,500

3,000

4,000

5,000

6,000

Net Generation (MU)Net Generation (MU) Total Income (` Crs)Total Income (` Crs)

500

1,000

1,500

1 000

2,000

3,000

‐

500

Q1FY

10Q2

FY10

Q3FY

10Q4

FY10

Q1FY

11Q2

FY11

Q3FY

11Q4

FY11

Q1FY

12Q2

FY12

Q3FY

12Q4

FY12

Q1FY

13Q2

FY13

Q3FY

13

‐

1,000

Q1FY

10Q2

FY10

Q3FY

10Q4

FY10

Q1FY

11Q2

FY11

Q3FY

11Q4

FY11

Q1FY

12Q2

FY12

Q3FY

12Q4

FY12

Q1FY

13Q2

FY13

Q3FY

13

Q Q Q Q Q Q Q Q Q Q Q Q Q Q QQ Q Q Q Q Q Q Q Q Q Q Q Q Q Q

800900

1,000

300

350

EBITDA (` Crs)EBITDA (` Crs) PAT (` Crs)PAT (` Crs)

400500600700800

100

150

200

250

‐100200300400

(50)

‐

50

100

FY10FY

10FY

10FY

10FY

11FY

11FY

11FY

11FY

12FY

12FY

12FY

12FY

13FY

13FY

13

Q1FY

10Q2

FY10

Q3FY

10Q4

FY10

Q1FY

11Q2

FY11

Q3FY

11Q4

FY11

Q1FY

12Q2

FY12

Q3FY

12Q4

FY12

Q1FY

13Q2

FY13

Q3FY

13

(150)

(100)Q1F

YQ2

FYQ3

FYQ4

FYQ1

FYQ2

FYQ3

FYQ4

FYQ1

FYQ2

FYQ3

FYQ4

FYQ1

FYQ2

FYQ3

FY

15

PROJECTS UPDATEPROJECTS UPDATEPROJECTS UPDATEPROJECTS UPDATE

RAJ WEST POWER LTD. IRAJ WEST POWER LTD. IRAJ WEST POWER LTD. IRAJ WEST POWER LTD. I

Gross Capacity 1,080 MW (8 x 135)

Status UpdateProject Details

•Unit V & VI synchronized on 30thM h 2012 d 23 d J 2012

p y , ( )

TechnologySub­critical Captive Lignite based TPP

March, 2012 and 23rd June, 2012respectively

•Unit VIII synchronized on 29th October,2012

Fuel LinkageFSA with BLMCL (49% JV) for supply of lignite from captive lignite mines of BLMCL 

W  

2012

•Unit VII synchronized on 28thDecember, 2012

Water Allocation

Allocation from IGNP

Long term arrangement for entire Power Off take

g gcapacity with state Government distribution utilities

` 7 223C

Project Cost

` 7,223CrsDebt / Equity: 75:25Amt spent till Dec 31, 2012:` 6,275 Crs` 6,275 Crs

Commissioning Unit I – IV Operational

17

KUTEHR HYDRO PROJECTKUTEHR HYDRO PROJECTKUTEHR HYDRO PROJECTKUTEHR HYDRO PROJECT

Status UpdateProject Details

•Techno Economic Clearance from CEAreceivedGross Capacity 240 MW (3 x 80)

Technology Run­of­the­river Hydropower

received

•MOEF accorded Forest stage I clearance& Environment clearance

gy y p

Water Allocation

Ravi River

•Pre­qualification of vendors for electromechanical & hydro mechanical workscompleted, tender documentationunder finalisation

Power Off take

Free power to GoHP – 12% to 30% of delivered energy for 40 years. Balance through short 

   

• Implementation agreement signed withHP government

• Consent to Establish obtained from HPterm arrangements 

` 1,798 CrsA t  t till D  31  2012   

• Consent to Establish obtained from HPState Pollution Control Board

• Cleared second round of CDMregistration with UNFCCC

Project Cost Amt spent till Dec 31, 2012 : ` 214 Crs • Stage II Forest clearance received from

MOEF in January 2013

Land acquisition under progress• Land acquisition under progress

•Technical & commercial bid underevaluation for main civil works 18

DOMESTIC MINING PROJECTSDOMESTIC MINING PROJECTSDOMESTIC MINING PROJECTSDOMESTIC MINING PROJECTS

Status Update

BLMCL­ Kapurdi Mine•Mining lease transferred in the name  of BLMCL•Production of  0.97 Million Tons in Q3FY’13• Lignite supplied to Power plant 0.94 Million Tons

•Applied for capacity expansion to 7MTPA

BLMCL­ Jalipa Mine•MOEF Clearance received •Mine development plan approved• Forest clearance received from MOEF 

• Land acquisition under progress; Entire price deposited

MJSJ Coal Public hearing completed

Land acquisition under progress

19

Land acquisition under progress

OVERSEAS COAL PROJECTOVERSEAS COAL PROJECTOVERSEAS COAL PROJECTOVERSEAS COAL PROJECT

SACMH Status Update

Location Umlabu (Wit Bank Region), South Africa •Raw Coal produced duringQ3FY’13: 30,939 tonnes

Concessions

•Richard’s Bay Coal Terminal Entitlement for 0.5 MTPA•Railway siding within the mine with a 

•Total Sales during Q3FY’13:56,378 tonnes(YTD Sales: 179,332 tonnes)

a way s d g w t t e e w t acapacity to handle upto 0.5 MTPA

GCV (NAR) 6000 Kcal ­ 6200 Kcal

• SACMH has put the mine underCare & Maintenance.

20

FORWARD LOOKING & CAUTIONARY STATEMENTFORWARD LOOKING & CAUTIONARY STATEMENTFORWARD LOOKING & CAUTIONARY STATEMENTFORWARD LOOKING & CAUTIONARY STATEMENT

Certain statements in this report concerning our future growth prospects are forward lookingstatements, which involve a number of risks, and uncertainties that could cause actual results todiffer materially from those in such forward looking statements. The risk and uncertaintiesrelating to these statements include, but are not limited to risks and uncertainties regardingrelating to these statements include, but are not limited to risks and uncertainties regardingfluctuations in earnings, our ability to manage growth, intense competition within Power industryincluding those factors which may affect our cost advantage, wage increases in India, our ability toattract and retain highly skilled professionals, time and cost overruns on fixed­price, fixed­timeframe contracts our ability to commission mines within contemplated time and costs our ability toframe contracts, our ability to commission mines within contemplated time and costs, our ability toraise the finance within time and cost client concentration, restrictions on immigration, our abilityto manage our internal operations, reduced demand for power, our ability to successfully completeand integrate potential acquisitions, liability for damages on our service contracts, the success ofthe companies in which the Company has made strategic investments withdrawal ofthe companies in which the Company has made strategic investments, withdrawal offiscal/governmental incentives, impact of regulatory measures, political instability, legalrestrictions on raising capital or acquiring companies outside India, unauthorized use of ourintellectual property and general economic conditions affecting our industry. The company doesnot undertake to update any forward looking statements that may be made from time to time bynot undertake to update any forward looking statements that may be made from time to time byor on behalf of the company.

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