• The value of production for the quarter was up by 74% to Rs 1002.68 crore even while the sales (excluding other operating income) was up by 86% to Rs 1005.85 crore. Strong growth in sales is largely due to higher volume as the realization/MW for the quarter stood flat at Rs 4.74 crore/MW while the volume jump by 86% to 212 MW.

• Contraction in operating profit margin by 120 bps to 14.1% can be attributed to higher material cost as that of staff, EPC and other expenses stayed lower. Material cost as proportion to sales net of stocks was up by 90 bps to 67.7%. But the staff cost, EPC and OE was lower by 20 bps (to 2.0%), 160 bps (to 7.8%) and 160 bps (to 100%) respectively. Higher material cost seems largely on account of products/project mix it seems.

• Other income was up by 238% to Rs 20.61 crore. The interest cost was up by 95% to Rs 28.35 crore. The depreciation was higher by 63% to Rs 7.88 crore. Thus the PBT (before Forex loss) was up by 82% to Rs 126.95 crore. Forex impact for the quarter was a loss of Rs 5.55 crore compared to a profit of Rs 3.84 crore. Thus on marginally escalated base the growth at PBT moderated to 65% (to Rs 121.40 crore). Taxation was up by 69% to Rs 32.27 crore. With taxation stand higher the net profit was up by 63% to Rs 89.13 crore.

Half yearly performance

Sales were higher by 94% to Rs 1644.05 crore benefiting by 84% jump in volume and 5% increase in realization. With 50 bps contraction in operating profit margin, the operating profit was higher by 88% to Rs 237.13 crore. Eventually the net profit was higher by 79% to Rs 139.63 crore strained by higher interest, depreciation, forex loss and taxation.

Order book update

Order book as end of September 2015 was 1202 MW compared to 1220 MW as end of June 2015. The company added about 194 MW of order during Q2FY16. The order book is estimated to be executed over 12-15 months.

Project update

While the blade plant in Madhya Pradesh has already commenced production the tower plant is scheduled to commence production in H2FY16.

The stock hovers around Rs 402.50.