Home > Financial Results, Power > Listed Power Companies Record Higher Profitability

Listed Power Companies Record Higher Profitability

While power generation in India grew by a moderate 5.6% during the financial year 2010-11, revenues of the electricity companies listed on the bourses (24 companies taken in to consideration) reflected a healthy financial performance. Read why..

  • Power companies are allowed to pass on the increase in cost of raw material classified under the variable cost head. This resulted in higher tariffs charged by most companies.
  • During the March 2011 quarter, power generation grew by 8.5%, whereas the sales realisation is expected to have grown by 6-7%.
  • A surge in other income resulted in 18.2% increase in total income for the set of companies.
  • The industry managed to keep growth in raw material cost below sales revenues on account of coal contracted in the previous quarter when the prices were comparatively lower. 
  • The industry kept a tight leash on the operating costs which enabled better profit performance.
  • Post operative expenses rose substantially with commissioning of new projects leading to higher depreciation and higher interest rates eroding profits.

Going forward, the industry is likely to record a more than proportionate increase in raw material cost. Hardening interest rates will also take a toll on their profits.

Financial Performance of Electricity Companies            (Rs crore)
 

Jan- Mar 2010

Jan- Mar 2011

% Y-o-Y Growth

Net sales

25,892.9

30,003.6

15.9

Raw materials & purchase of finished gds.

12,412.1

14,321.3

15.4

Salaries and wages

2166

1,969.9

-9.1

Total other expenses

3,059.2

3,671.7

20.0

Interest expenses

1,428.4

1,835.6

28.5

Depreciation

1,993.8

2,321.5

16.4

Total tax provision

696.1

1,577.5

126.6

Net profit

4,929.2

6,624.1

34.4

PAT / Total income

18.3%

20.2%

 
 Source: CMIE
Advertisements
Categories: Financial Results, Power
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: