• OPM contracted by marginal 40 bps to 3.1% and that is largely due to higher cost electricity purchase. The cost of energy purchase as % of sales was higher by 190 bps to 95.9%. The staff cost was flat at 0.3%. But the other operating expense and other expense was down by 140 bps and 10 bps respectively to 0.2% and 0.4%. Thus thanks to higher sales the operating profit was up by 10% to Rs 102.08 crore.
• Other operating income include surcharge of Rs 53.09 crore during the quarter (up 63% from Rs 32.59 crore in corresponding previous quarter) from sundry debtors on amounts overdue on sale of power. Correspondingly surcharge expense of Rs 7.96 crore during the quarter (up from Rs 0.58 crore in corresponding previous quarter) paid / payable to Sundry Creditors has been included in "Operating expenses.
• With the company adopting and effecting Ind AS 116, the company recognized financial and operating leases in respect of its PPAs and PSAs which were earlier recognized as leases under IND AS 17. As the company has derecognized financial and operating leases as on April 1, 2019 there is no lease income and expenses in respect of such leases from April 1, 2019. The company has accounted a lease income of Rs 44.13 crore (nil in Q4FY20) in other operating income in corresponding previous period with an equal amount accounted part of operating expense. The other income for corresponding previous period include and amount of Rs 20.83 crore (nil in Q4FY20) and an equal amount was part of finance cost. Thus the impact on net income and net expenses on account of Ind AS 116 stand at RS 64.96 crore each and the impact at PBT was nil.

Consolidated sales was up by 20% to Rs 3634.52 crore and with OPM stand contract by 430 bps to 10.4%, the operating profit was down by 15% to Rs 378.43 crore. The PBT was down by 37% to Rs 81.21 crore after accounting for lower other income, lower interest and higher depreciation. The EO expense was Rs 1.01 crore as against an income of Rs 0.02 crore in the corresponding previous period. Thus the PBT after EO was down by 38% to Rs 80.20 crore. The share of profit from associate was Rs 0.14 crore against nil in the corresponding previous period. The PBT after SPFA was thus down by 38% to Rs 80.34 crore. The taxation was down by 41% to Rs 32.38 crore and thus the PAT was down by 35% to Rs 47.96 crore. Eventually the net profit (after MI) was down by 26% to Rs 45.49 crore with minority interest stand lower by 81% to Rs 2.47 crore.

On deducting standalone financials from consolidated financials, the sales was down by 1% to Rs 379.26 crore and with OPM crash to 72.9% (from 92.2% in corresponding previous period) the operating profit was down by 22% to Rs 276.35 crore. However at PBT before EO level it was a loss of Rs 5.84 crore compared to a profit of Rs 46.32 crore in the corresponding previous period.

Yearly performance

Standalone sales was up by 22% to Rs 16442.97 crore. With OPM contract by 40 bps to 2.7%, the growth at operating profit was up by 6% to Rs 436.22 crore. The PBT was up by 7% to Rs 423.66 crore gained largely by lower interest and depreciation cost with the OI stand lower for the period. With EO expense stay higher at Rs 1.13 crore (a swing of Rs 1.10 crore), the PBT after EO was up by 6% to Rs 422.53 crore. The taxation was lower by 24% to Rs 102.42 crore and thus the PAT was up by 22% to Rs 320.11 crore.

Consolidated sales for the period was up by 19% to Rs 18100.81 crore. With OPM contract by 280 bps to 10.1% and thus the OP was down by 7% to Rs 1823.47 crore. The PBT before EO was down by 21% to Rs 590.47 crore after accounting for lower other income, lower interest and lower depreciation. EO expense was Rs 1.14 crore against an income of Rs 0.03 crore and thus the PBT after EO was down by 21% to Rs 589.33 crore. Share of profit from associate was a loss of RS 0.04 crore and thus the PBT (after share of profit from associate) was down by 21% to Rs 589.29 crore. The taxation was down by 28% to Rs 183.23 crore and thus the PAT was down by 17% to Rs 406.06 crore. Eventually the net profit after MI was down by 14% to Rs 367.55 crore.

Dividend

The Board of Directors of the Company at its meeting held on June 19, 2020, inter alia, has recommended a dividend @ 55% i.e. Rs. 5.50/- per share to the shareholders for their approval.