• Operational income was lower by 4% to Rs 1308.58 crore. Pending approval of tariff for the period 2014-19 by the CERC as per notification No LI/144/2013/CERC dated February 21, 2014, sales have been recognized provisionally as per tariff notified by CERC for the period 2009-14 in respect of Sewa II, Chameria III, Chutak, TLDP II and Parbati III power stations. However pending ‘truing up' of the capital cost for the tariff period 2009-14, sales have been reduced by Rs 8.60 crore on estimated basis during the quarter (corresponding previous quarter Rs 22.13 crore) as an abundant precaution.

• Operating profit margin contracted by 350 bps to 47.7% largely due to higher staff cost and OE. While staff cost as proportion to sales was higher by 230 bps to 23.6% and the OE was up by 490 bps to 21.6%. The water charge was down by 370 bps to 7.1% and that could not fully offset the increase in cost in other heads.

• Other income was down by 6% to Rs 174.99 crore. An amount of Rs 387.25 crore is due but not account of Late payment surcharge till Dec 31, 2016 due to significant uncertainties in the timing of its collection from the customers. Thus the PBIDT was down by 10% to Rs 799.43 crore.

• Interest cost was up by 1% to Rs 268.83 crore and the depreciation was up by 3% to Rs 355.13 crore. Thus PBT (before rate regulated income/exp) was down by 36% to Rs 175.47 crore.

• The company recognized a regulated income of Rs 134.02 crore, an increase of 2%. Regulatory income for the quarter is recognized in respect of Subansiri Lower project, where construction activities have been interrupted w.e.f December 16, 2011 due to protest of anti dam activists. Thus the PBT (after rate regulated income) was down by 24% to Rs 309.49 crore.

• Taxation was down by 60% to Rs 94.80 crore. Spurred thus the growth at PAT was 26% to Rs 214.69 crore.
• The other comprehensive expense was Rs 1.61 crore compared to an income of Rs 17.60 crore in the corresponding previous period. Thus the net profit after OCI was up by 13% to Rs 213.08 crore.

• CERC regulations for the tariff period 2014-19 provide for recovery of income tax from the beneficiaries by way of grossing up of the Return on Equity with effective tax rate of the respective financial year i.e. actual tax paid during the year on the generating income. Accordingly, deferred tax assets created for the quarter ended on Dec 2016 on generating income amounting to Rs 20.63 crore is accounted for as deferred tax adjustment against deferred tax liability as the same would get adjusted in effective tax rate in future period.

Nine month performance

Sales was higher by 3% to Rs 5908.73 crore and that with 150 bps contraction in OPM has resulted in just 1% growth in operating profit to Rs 3540.50 crore. Powered by 60% jump in other income to Rs 1216.12 crore, the PBIDT was up by 11% to Rs 4756.62 crore. Other income for the nine month ended Dec 2016 includes recovery of late payment surcharge of Rs 440.32 crore from beneficiaries. Interest cost and depreciation stood higher by marginal 1% and 2% respectively to Rs 823.31 crore and Rs 1035.69 crore. And thus the PBT before regulatory income was up by 19% to Rs 2897.62 crore. The regulatory income was down by 5% to Rs 380.41 crore and thus the PBT (after regulatory income) was up by 15% to Rs 3278.03 crore. Taxation was down by 2% to Rs 650.86 crore and thus the growth at PAT was 20% to Rs 2627.17 crore. OCI was Rs 19.21 crore for the quarter compared to an expense of Rs 12.82 crore in the corresponding previous period. After accounting for other comprehensive income the total comprehensive income was up by 22% to Rs 2648.38 crore.