• OPM contracted by marginal 60 bps to 2.6% and that is largely due to higher cost electricity purchase. The cost of energy purchase as % of sales was higher by 220 bps to 96.4%. The staff cost was flat at 0.3% and the other expense stood expanded by 10 bps to 0.6%. But the other operating expense was down by 180 bps to 0.1%. Thus thanks to higher sales the fall at operating profit was restricted at 2% to Rs 90.96 crore.
• The company has recognized surcharge of Rs 45.65 crore during the quarter (for the corresponding quarter ended Dec 2018 it was Rs 45.06 crore) from sundry debtors on amounts overdue on sale of power which has been included in "Other Operating Income". Correspondingly surcharge expense of Rs 2.52 crore during the quarter (for the corresponding quarter ended Dec 2018, Rs 9.16 crore) 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 44.12 crore (nil in Q3FY20) in other operating income in corresponding previous period with an equal amount accounted part of operating expense. The other income for corresponding previous period was RS 15. 30 crore (nil in Q3FY20) and an equal amount was part of finance cost. The with net income and net expenses on account of Ind AS 116 stand at RS 59.42 crore each the impact at PBT was nil.

Nine-month performance

Standalone sales was up by 22% to Rs 13187.71 crore. With OPM contract by 40 bps to 2.5%, the growth at operating profit was restricted at 5% to Rs 334.14 crore. The PBT was up by 7% to Rs 336.61 crore gained largely by lower interest and depreciation cost as the OI stand lower for the period. With EO expense stay higher at Rs 0.13 crore (a swing of Rs 0.14 crore), the PBT after EO was up by 7% to Rs 336.48 crore. The taxation was lower by 24% to Rs 80.54 crore and thus the PAT was up by 23% to Rs 255.94 crore.