• Sale were higher by 71% to Rs 1950.34 crore. With OPM expand by 1640 bps to 50.4%, the operating profit jumped up by 154% to Rs 983.15 crore.
• Expansion in operating profit margin to the tune of 1640 bps was largely due to sharp fall in staff cost as well as OE. The staff cost (as % of sales) was down by 1550 bps to 22.6. OE was down by 190 bps to 18.5%. However the generation expense was up by 40 bps to 7.8%.

• Other income was down by 12% to Rs 235.91 crore. The interest cost was up by 2% to Rs 222.81 crore and the depreciation was up by 19% to Rs 411.45 crore. Thus the PBT jumped up by 531% to Rs 584.80 crore.

• Taxation in was up at Rs 662.56 crore compared to a write back of Rs 268.39 crore. Thus at PAT level it was a loss of Rs 77.76 crore against a profit of Rs 361.13 crore in the corresponding previous period.

• Regulatory income was up at Rs 570.05 crore compared to an expense of Rs 161.33 crore in the corresponding previous period. Thus the PAT was up by 146% to Rs 492.29 crore. Other comprehensive expense was up by 530% to Rs 25.76 crore and thus the net profit was up by 138% to Rs 466.53 crore.

Yearly performance

Sales was up by 18% to Rs 8161.18 crore but with OPM expand by 140 bps to 54.9% the operating profit was up by 21% to Rs 4481.47 crore. After accounting for lower other income, lower interest and higher depreciation the PBT was up by 4% to Rs 2921.38 crore. The taxation was up by 917% to Rs 1114.23 crore. Tax liability pertaining to penod 2014-15 to 2017-18 has become lower by Rs. 81.22 Crore wh1ch has been adjusted/ considered in the tax computation for the current year ended 31.03.2019. And thus PAT was down by 33% to Rs 1807.15 crore. Regulatory income jumped up to Rs 823.40 crore from just Rs 62.33 crore in corresponding previous period. Thus the fall at PAT (after RI) was restricted at 5% to Rs 2630.55 crore. The other comprehensive income was an expense of Rs 12.41 crore compared to an income of RS 5.88 crore thus leading to a fall of 6% in total comprehensive income to Rs 2618.14 crore.

Consolidated sales was up by 16% to Rs 8982.87 crore and the OPM expand by 60 bps to 55.7%, the OP was up 17% to Rs 4999.91 crore. Eventually the net profit attributable to owners was up by 3% to Rs 2583.06 crore.

Other Developments

The management has carried out impairement assessment of carrying value of the assets including Regulatory Deferral Account Balances in respect of Subansiri Lower Project where construction activities have been interrupted with effect from 16.12.2011 and the matter is currently pending before National Green Tribunal (NGT). Regulatory Deferral Account (RDA) balances includes Rs. 3267.34 Crore pertaining to the said Project as on 30.06.2018. Based on above assessment, further accrual to RDA balances beyond 30.06.2018 has not been made.

Accordingly, borrowing and administrative costs amounting toRs 107.01 Crore during quarter ended on 31.03.2019 (Rs 349.63 Crore for the year ended on 31.03.2019) incurred on the Project have not been recognised for creation of Regulatory Deferral Account balance. Consequently, movement in Regulatory Deferral Account balance is Rs. NIL during the quarter ended on 31 .03.2019 (Corresponding previous quarter Rs. 120.32 Crore) and is Rs. 94.52 Crore during the year ended on 31 .03.2019 (Corresponding previous year ended on 31 .03.2018 Rs. 474.82 Crore).

The Company has made moderation in tariff of Kishanganga Power Station by charging lower depreciation in the first 12 years and spreading over the balance depreciation upto 90% of capital cost equally over the balance life of the Power Station, which has been

approved by CERC. Depreciation has been charged in the books as per the Tariff Regulations, keeping in view the provisions of Tariff Policy, 2016 read with Electricity Act, 2003. Accordingly, the difference between the depreciation charged in the books as per the rates provided in the Tariff Regulations and that recoverable through tariff amounting to Rs 49.55 Crore during the quarter ended on 31 .03.2019 and Rs 171 .98 Crore during year ended 31.03.2019 (Corresponding previous quarter and year ended: Rs. NIL) has been recognised as income under 'Movement in Regulatory Deferral Account Balance.'

Income under 'Movement in Regulatory Deferral Account Balance has been recognised in respect of expenditure towards Pay Revision of employees amounting to Rs. 42.75 Crore for the quarter ended 31.03.2019 (Corresponding previous quarter Rs. 84.10 Crore) and Rs.

203.85 Crore for the year ended on 31 .03.2019 (Corresponding previous year Rs. 242.90 Crore) which is recoverable through tariff. (iv) In line with note 7(i) above, Deferred tax recoverable from beneficiaries amounting to Rs. 353.61 Crore (Rs 478.38 Crore for the quarter ended 31.03.2019) have been presented as Regulatory Deferral Account balance for the year ended 31.03.2019.

Pending approval of tariff by the Central Electricity Regulatory Commission (CERC) and/or approval of revised cost estimate, sales have been recognized as per management estimate based on Tariff regulations/orders in respect of Chamera-111, TLDP-111, Sewa-ll & TLDP-IV Power stations. Further, sales have also been recognized towards Energy Shortfall and reimbursement of additional impact of Goods and ServicesTax (GST) due to change in law. Accordingly, Revenue from Operations includes Rs. 515.05 Crore (including Rs. 409.51 Crore pertaining to earlier years).

Consequent upon approval of the Government of India vide Ministry of Power Order No. 2/1/2014-H.I (PI) dated 29.01.2019 to regularize pay scales of below Board level executives w.e.f. 1st January, 1997, arrears have been paid to employees for Rs. 290.49 Crore (amount for the current quarter ended 31 .03.2019 is Rs. 9.31 Crore). Out of this, Rs. 92.90 Crore (amount for the current quarter ended 31 .03.2019 is Rs. 2.25 Crore) has been capitalised and Rs 197.59 Crore (amount for the current quarter ended 31 .03.2019 is Rs. 7.06 Crore) has been charged to the Statement of Profit and Loss during the the year ended 31 .03.2019.

During the quarter, the company has paid an interim dividend @7.10% of the face value of Rs. 10 per share (Rs. 0.71 per equity share) for the financial year 2018-19. The Board of Directors has recommended final dividend@ 7.50% of the face value of Rs. 10 per share (Rs. 0.75 per equity share) for the financial year 2018-19. Total dividend (including interim dividend) is 14.60% of the face value of Rs. 10/- per share i.e. Rs 1.46 per equity share.

The Company has completed buy-back of 21,42,85,714 equity shares of Rs 10 each from the shareholders on 22nd January, 2019, on proportionate basis by way of tender offer at a price of Rs 28 per equity share for an aggregate amount of Rs 600 crore.