Net Profit stood at Rs 4.35 crore in the Q1FY12 against loss of Rs 3.01 crore in the corresponding previous period on 23% improvement in operating income to Rs 62.23 crore.

Operating profit margins jumped up by robust 700 bps to 43.4% pulling up the operating profit to Rs27.01 crore higher by sharp 47% on improved results in both wind and biomass due to increased capacity of wind as compared to Q1FY11 and better PLF achieved in Biomass business.

Interest costs zoomed by 77% to Rs 17.62 crore, provision for depreciation increased by 15% to Rs 11.16 crore while provision for tax surged by 112% to Rs 4.20 crore.

Current generation capacity was 220 MW with the wind capacity being 179.5 MW spread over 4 wind farms. The company has 5 biomass plants with an aggregate capacity of 40.5 MW.

The annualized PLF for the wind operations went down from 19.57% in the quarter ended June 2010 to 18.90% in the quarter ended June 2011. But the company expects improvement in PLF on new assets at 29-34%. On the positive side, Biomass PLF improved from 53.9 % to 61.4% during the above period.

Power generated in Q1FY12 was 127.86 million units of which the generation from wind assets being 73.56 million units and that of Biomass units being 54.3million units.

Biomass plants in Rajasthan of 8MW-Kotupulli & Chippaborad were shut down due to problems with old turbine and boilers for 4 months and 2 months respectively which lead to less capacity utilization for this quarter

The total operating income of Biomass was Rs 31.82 crore, higher by 18% and its EBITDA was Rs 2.48 crore (compared to a loss of Rs 0.319 crore) as EBITDA margins stood at 7.8%. On the other hand the operating income from wind business is Rs30.4crore, higher by 28% and EBITDA stood at Rs 2.45 crore as EBITDA margins was at 80.7%. While the PAT (after MI) of Biomass for the quarter was Rs 0.86 crore (against a loss of Rs 7.82 crore in Q4FY10), that of Wind business was at Rs 2.63 crore (against a profit of Rs 3.24 crore) in corresponding previous quarter.

Average price realization of wind power improved from Rs 3.54 per unit to Rs 4.28 per unit due to more sales to Group Captive consumers, which is expected to continue in the future as well. On the other hand, Biomass power price realization has also improved to Rs 5.46 per unit from Rs 5.23 per unit due to increased sale to third parties during the quarter.

Under Biomass segment, Fuel cost rose to Rs 3.27 per unit over Rs 3.17 per unit mainly due to increase in procurement cost which was somewhat offset by improvement in specific fuel consumption per unit from 1.76 Kg/unit to 1.64Kg/unit as a result of improved plant utilization and maintenance. All these factors facilitated Biomass costs to increase by mere 8% to Rs.29.34 crore as compared to the corresponding period of last year.

Company expects improvement in specific consumption due to more usage of processed fuel, better operational efficiencies and also hopes for a significant improvement in operational performance of Rajasthan plants in terms of output as well as PLF.

Company expects potential for tariff revision in biomass division due to increased biomass costs. In wind division, the tariff realization is expected to be improve only after finalization of modalities

Wind Segment:

The Company has not committed funds for projects beyond 155.6 MW in Tamil Nadu due to infrastructure and evacuation issues associated with TNEB.Out of which, 32.5MW (38 Gamesa machines of 850KW) of wind capacity has been commissioned during July 2011. The delay in commissioning was mainly due to delay on the part of TNERC in announcing REC implementation guidelines. In view of the inordinate delay, decision was taken to commission machines without REC benefit in the interest of not missing the season.

Company expects the remaining 60.2MW of wind capacity to be added by Q2FY12 and the other 63.1MW in H2FY12 in Tamil Nadu. TNERC has notified the eligibility norms for captive power and hence, REC would be available for this 123.3 MW of wind capacity. In respect of 32.3 MW already commissioned, petition would be filed before the Regulatory Commission to obtain the benefit although it is not certain if the benefit would be granted. RECs could provide upside of Rs 1.5 to 3.9/KWH.

Company has commissioned 10.5MW capacity in Coroatia in Q2FY12.Capacity of 10MW in Gujarat, 10.5MW in Srilanka is planned to be commissioned by Q3FY12

Capacity of 80 MW in Maharashtra is expected to be commissioned by Q3FY13, 50 MW each in Karnataka & Gujarat will be commissioned by Q2FY13 and Q1FY13 respectively, 46.8MW in Andhra Pradesh would be commissioned each in Q1/Q3 FY13, and an other 50 MW in Tamil Nadu plant yet to be reviewed as its commencement is based on grid availability. The 50 MW of Gujarat and Karnataka contracts have been finalized to Suzlon.

Biomass Segment:

10MW of Pollachi unit was commissioned in July 2011 and its sale model is on PPA to TNEB. Biomass Units at Maraikal, Hanumangarh and Narasinghpur totalling 27.5 MW is estimated to be completed by Q2FY12 and Both Kolhapur 20 MW plant and 8MW plant in Kishanganj are planned to be commissioned by Q3FY12. Among all these plants, Kolhapur plant got eligibility for REC and all others by way of merchant sale.

All wind projects that shall be selling to grid at APPC prices (Gujarat and Andhrapradesh) and all biomass & wind projects selling on third party basis shall be eligible for REC.

The current IRR for the wind projects is 16% excluding new equipments.

Currently the debt stands at Rs 819.864 crore and cash and cash equivalents is 261.939 crore.

The land required for Biomass plant is 28 acres and for the wind plant it is 30 acres with spacing of 2-5 acres in between the machines.