The company has turned around in Q2FY14, both on a QoQ and YoY. It posted a consolidated net profit at Rs.75 crore v/s loss of Rs.115 crore in Q1FY14 and loss of Rs.84 crore in Q2FY13. And this was despite a forex loss of Rs.354 crore for the quarter. Thankfully there was no provisioning for impairment during this Q2 and Q1, unlike in orevious Q2, where it had made a provisioning of Rs.250 crore. The company has stated that the management  reassessed the recoverability of the carrying amount of the assets at Mundra considering the fuel cost, exchange rate variation and other operating costs that would impact future cash flows and has concluded that no further provision for impairment loss for the half-year ended September 2013.

 Its consolidated net revenue was up 14% (YoY) at Rs.8717 crore and this was due to operations of all units at Mundra and Maithon. Its operating costs also rose 10% of which the biggest outgo was on purchase of fuel, which comprised of 33% of the total cost.  Tax outgo was down 44%.

The company has two segments – power and coal. Its power business contributed  73% to the total revenue and rose 54% (YoY) and EBIT was up by a smart 54% .  Revenue from coal rose 7% but it posted a loss of Rs.4 crore due to lower price realization on coal and impact of forex loss, which was partly offset by higher volume. The company’s interest burden is very high, coming in at Rs.803 crore, down 11% sequentially. Its debt (long term borrowings + short term borrowings) stands currently at over Rs.38,000 crore, up 8.5% (YoY).

Sales volume for the quarter stood at 3762 MUs and the overall generation was 3404 MUs. Mundra reported generation of 5425 MUs v/s 1540 MUs (YoY) and Maithon plant reported 1211 MUs v/s 1196 MUs (YoY).  Trombay Thermal Power Station generated 1670 MUs while Hydro Power Stations generated 478 MUs. Jojobera Thermal Power Station generated 747 MUs and Haldia reported generation of 223 MUs. Industrial Energy reported generation of 443 MUs and Wind Farms generated 286 MUs. Solar plants recorded generation of 1 MU.  The company currently has installed generation capacity of 8521 MW in India.