• Aggregate electricity generation of the power plants of the company stood higher by 10.3% to 11256.1 million units in Q1FY17 up from 10206.5 million units in corresponding previous period. While the generation of Rosa TPS was lower by 3.2% the generation of other plants especially that of Sasan and Butibori was higher thus led to low teen growth in overall generation in Q1FY17.
• Despite higher generation, as the per unit realization stand lower, the income from operation for the quarter was nearly flat (up 1%) to Rs 2360.23 crore. The other operating income was lower by 7% to Rs 318.45 crore and thus the net sales was flat at Rs 2678.68 crore.
• OPM for the quarter at 42.6% was higher by 220 bps compared to corresponding previous period OPM of 40.4%. Expansion in OPM is largely due to lower fuel cost. Cost of fuel as proportion to sales was lower by 230 bps to 47.2%. The employee cost was flat at 1.5%. But that of operation expenses was up by 10 bps to 8.7%.
• Other income was lower by 14% to Rs 69.69 crore. The interest cost was higher by 8% to Rs 645.96 crore and depreciation was up by 13% to Rs 146.71 crore. Thus the de-growth at PBT was lower by 4% to Rs 419.01 crore.
• The taxation for the quarter was lower by 41% to Rs 78.52 crore. Thus the PAT eventually stood higher by 13% to Rs 340.49 crore.

Other developments

In case of Vidarbha Industries Power (VIPL), MERC has disallowed a certain portion of fuel charges and fixed charges aggregating to Rs 434.70 crroe for FY15 and Rs 405.89 crore for FY16 vide its order dated June 20, 2016. VIPL has filed an appeal against the said order with APTEL. Pending final decision of the APTEL on the above and based on the legal advice obtained, no impact of the said order has been given in the financial results.

The stock hovers around Rs 51.50.