Presentation Title
The Tata Power Company Ltd
October
2009
Presentation
Subtitle
1
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be
“forward looking statements”, including those relating to The Tata Power Company Limited’s general business plans
and strategy, its future outlook and growth prospects, and future developments in its industry and its competitive
and regulatory environment. Actual results may differ materially from these forward-looking statements due to a
number of factors, including future changes or developments in The Tata Power Company Limited’s business, its
competitive environment, its ability to implement its strategies and initiatives and respond to technological changes
and political, economic, regulatory and social conditions in India.
This presentation does not constitute a prospectus, offering circular or offering memorandum or an offer to acquire
any Shares and should not be considered as a recommendation that any investor should subscribe for or purchase
any of The Tata Power Company Limited’s Shares. Neither this presentation nor any other documentation or
information (or any part thereof) delivered or supplied under or in relation to the Shares shall be deemed to
constitute an offer of or an invitation by or on behalf of The Tata Power Company Limited.
The Company, as such, makes no representation or warranty, express or implied, as to, and do not accept any
responsibility or liability with respect to, the fairness, accuracy, completeness or correctness of any information or
opinions contained herein. The information contained in this presentation, unless otherwise specified is only current
as of the date of this presentation. Unless otherwise stated in this document, the information contained herein is
based on management information and estimates. The information contained herein is subject to change without
notice and past performance is not indicative of future results. The Tata Power Company Limited may alter, modify
or otherwise change in any manner the content of this presentation, without obligation to notify any person of such
revision or changes. This presentation may not be copied and disseminated in any manner.
THE INFORMATION PRESENTED HERE IS NOT AN OFFER FOR SALE OF ANY EQUITY SHARES OR ANY
OTHER SECURITY OF THE TATA POWER COMPANY LIMITED.
2
Agenda
Part A: Overview of Tata Power
Part B: Tata Power
Part C: Projects
Part D: Other Power Businesses
Part E: Other Businesses
Part F: Financial Performance
Part G: Sustainability
3
Part A: Overview of Tata Power
A Tata Company
Business Sectors
Revenue
15%
24%
FY 2009
Rs 325,334 cr
$ 71 bn
3%
6%
3%
4%
45%
Profits
25%
-30%
10%
16%
12%
8%
5
FY 2009
Rs 8,163cr
$ 1.8 bn
59%
Largest Companies
Tata Power Group – Major Investments
Tata Power
Joint Ventures
& Associates
Subsidiaries
Investments
100%
Coastal Gujarat Power
Ltd. (Mundra UMPP)
30%
KPC
100%
Trust Energy Resources
Pte. Ltd
30%
Arutmin
74%
Maithon Power Ltd.
30%
74%
Industrial Energy Ltd.
7%
TTML
8%
TTSL
Indocoal
40%
Panatone
40%
Tubed Coal
Mine Ltd
17%
Tata Comm.*
North Delhi Power Ltd.
33%
Mandakini Coal
Mine Ltd
26%
Dagachhu
51%
Powerlinks Transmission
Ltd.
100%
Tata Power Trading Co.
Ltd
5%
Exergen
10%
Geodynamics
49%
Tata BP Solar Ltd
48%
Tata Projects
51%
*Includes indirect holding in Tata Comm through Panatone
6
Businesses
Generation
Division
Other Entities
Transmission
Distribution
Power Business
Tata Power
Trading
Fuel & Logistics
Other Business
•
•
•
SED
46
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Trombay
11, 12, 17
Hydro
11, 13
Jojobera
19
Belgaum
18
Haldia
17
Wind Farm 21
Solar PV
47
Mundra
24-28
Maithon
29-31
Tata Steel JV (IEL) 20, 32
Dagachhu
Mumbai
Powerlinks
14
43
Mumbai
15, 16
Delhi: NDPL 42
Tata Power Trading 44
Indonesian Coal Mines
38-40
Mandakini
34
Tubed
34
Trust Energy
41
Tata BP Solar 47
Tata Projects
7
Refer to page numbers, for details
Part B: Tata Power
Generation: Business Models
Returns
Regulated
Captive Power
Plant
Merchant
Normative RoE
Upside
Value Drivers
Our Projects
Savings on Norms.
PLF incentive
Operational
Efficiency
Mumbai License Area,
Maithon, Wind
PPA driven
Merchant sales +
Saving on agreed
terms + PLF
incentive
Trading
Capabilities +
Operational
Efficiency
Jamshedpur (PH6),
Jojobera
Market Driven
No cap on returns
Trading
Capabilities
Haldia (100 MW)
Unit 8 (100 MW)
Case 1
(For Supply)
Bid Driven
PLF incentives
Control on
Capital Costs and
fuel costs
Haldia (MoU)
Case 2
(For Project)
Bid Driven
PLF incentives
Control on
Capital Costs and
fuel costs
Mundra UMPP,
Belgaum
9
Existing Presence
Mumbai 2027 MW
Captive Coal Blocks:
1. Jharkhand: Tubed Block,40% stake
2. Orissa: Mandakini Block, 33% stake
Mumbai License Area
Generation
Powerlinks
Thermal 1480 MW
Hydro
NDPL
447 MW
Distribution
Gujarat 50 MW
Jojobera 428 MW
Jamshedpur (IEL)120 MW
Transmission
Merchant Capacity
Trombay
100 MW
Haldia 120 MW
Mumbai
Maharashtra 95 MW
Belgaum 81 MW
Thermal
2329 MW
Hydro
447 MW
Wind
195 MW
Karnataka 50 MW
Other Projects:
1. Indonesian Coal Mines: 30% stake
2. Australia: Geodynamics, 10% stake
3. Australia: Exergen, 5% stake
4. Bhutan: Dagachhu Hydro Project, 26% stake
Transmission
Distribution
10
Mumbai License Area (LA) - Generation
Thermal
Hydro
Trombay - Thermal
Unit
Capacity
Fuel
Location
Capacity
Unit 4*
150 MW
Oil & Gas
Khopoli
72 MW
Unit 5
500 MW
Oil, Coal & Gas
Bhivpuri
75 MW
Unit 6
500 MW
Oil & Gas
Bhira
300 MW
Unit 7
180 MW
Gas
Total
447 MW
Unit 8
150 MW
Coal
Total
1480 MW
* Unit 4 on standby
Regulated Equity: Rs 1059 cr (FY09)
Incentives**: Rs 189 cr (FY 09)
RoE: 14%
** As per FY09 audited accounts, subject to regulatory scrutiny . New MYT regulation under review to apply from FY11
11
LA Generation Performance - Thermal
Generation (MU)
Availability (%)
PLF (%)
Aux. Consumption (%)
“Greentech Safety Gold Award 2008” for Outstanding achievement in Safety
Management for the 5th consecutive year in Apr 08
12
LA Generation - Hydro
Generation (MU)*
Availability (%)
*Decrease due to adherence to KWTA limits
PLF (%)
Aux. Consumption (%)
Bhira PSU - CEA Silver Shield for 2nd best performing station in the country
13
LA Transmission
•
Around 1100 ckm network comprising of 973 ckm of 220 kV / 110 kV overhead lines
and 124 ckm of 220 kV / 110 kV underground cables.
•
Two Extra High Voltage (EHV) lines capacity augmented (170 MVA to 350 MVA) by
replacement of the conductor with new technology “High Ampacity conductors”
•
Transformer capacity at Receiving Stations has also been augmented by 300 MVA.
Regulated Equity: Rs 412 cr (FY 09)
Incentives* : Rs 13 cr (FY 09)
RoE: 14%
* As per FY09 audited accounts, subject to regulatory scrutiny. New MYT regulation under review to apply from FY11
LA Distribution
•
“… Tata Power Company Ltd. is entitled to effect supply of electrical energy in retail directly
to consumers, whose maximum demand is less than 1000 KVA, apart from its entitlement to
supply energy to other licensees for their own purposes and in bulk …” - Hon’ble SC
•
“ … use of the distribution network of another distribution licensee, need to be explored by
TPC-D, so that the (network rollout) cost is optimised” – MERC Order, June 15th, 2009
•
Post the verdict, we have added 2366 new customers in FY09 with over 50,000 applications
pending for change-over customers in addition to new connections
•
We now have ~26,000 customers with 2500 MUs of sales
•
Cable network expanded by about 49 Circuit kms taking the total length to 1240 Circuit kms
•
Distribution Automation System provided for 236 of 340 substations for quick restoration of
power supply
Regulated Equity: Rs 145 cr (FY 09)
Incentives* : Rs 21 cr (FY 09)
RoE: 16%
*As per FY09 audited accounts, subject to regulatory scrutiny . New MYT regulation under review to apply from FY11
15
Customer Profile - LA
Commercial
21%
Residential
4%
Sales (MUs)
Essential
40%
Industrial
35%
Top 10 Customers
Consumption
(MU)
R evenue (Rs.
Cr)
FY09
FY09
MU's %
Revenue %
348.08
212.75
32.50%
36.90%
R. C. F. Ltd.
75.73
42.35
7.07%
7.35%
Hindustan Petroleum Corporation Ltd.
49.04
26.09
4.58%
4.52%
Bhabha Atomic Research Centre
46.25
20.81
4.32%
3.61%
Bharat Petroleum Corporation Ltd.
28.80
16.31
2.69%
2.83%
Name
Railway
FY09
Ordnance Factory
20.47
9.51
1.91%
1.65%
Godrej & Boyce Mfg. Co. Ltd.
19.39
10.55
1.81%
1.83%
Mahindra & Mahindra Ltd
18.58
10.16
1.74%
1.76%
B M C Bhandup Complex
18.12
7.59
1.69%
1.32%
Bombay Port Trust
11.66
5.22
1.09%
0.91%
16
Merchant Capacity
Haldia
Trombay - Unit 8
Project Capacity
100 MW
100 MW
Customers
PPA with Tata Power Trading
PPA with Tata Power Trading
Fuel
Hot flue gases from Hoogly
Metcoke
Imported Coal
Note: Remaining 20 MW in Haldia under PPA to WBSEDCL
Haldia
Trombay Unit 8
17
Belgaum
Capacity
• 81 MW
Fuel Type
• Heavy Fuel Oil
Customer
• KPTCL
Generation (MU)
• 12 year PPA till 2012
Business
• Bid Driven – Case 2
Model
• Fuel charge is pass through
• Other charges recovered as fixed
cost
PLF (%)
18
19
27
33
63
Jojobera
Capacity
• 428 MW
• Unit 1: 67.5 MW, Unit 2-4: 120 MW each
Fuel Type
• Domestic Coal
Customer
• Tata Steel
Generation (MU)
• 20 year PPA till 2017
Business
• Captive
Model
• Fuel and Interest are a pass through
• Other expenses on normative basis PLF (%)
77
73
76
80
1st Prize for Ash management from
Jharkhand State Pollution Control Board
Regulated Equity (FY09)
Rs 490 cr
RoE
14 -19%
Incentives* (FY09) Rs 20 cr
*As per FY09 audited accounts, subject to regulatory scrutiny
19
PH-6 (IEL)
Capacity
Ownership
Structure
• 120 MW
• IEL (74:26 JV of Tata Power and Tata
Steel
Fuel Type
• Coke Oven Gases of Tata Steel
Customer
• Tata Steel
Business
• Captive
Model
• Fuel and Interest are a pass through
• Other expenses on normative basis
20
Wind
Generation (MU)
Capacity
• 195 MW
Customer
• Maharashtra: PPA with TPC-D (62 MW)
PPA with TPTCL (34 MW)
• Karnataka: BESCOM (50 MW)
• Gujarat: GUVNL (30 MW)
3rd Party Sale: (20 MW)
Business
Model
•
Regulated
• Tariff based on State regulations
PLF (%)
18
19
Tariff
20
19
(Rs / kwh)
Annual
Escalation
Maharashtra
3.50
Rs 0.15 for 13 yrs
Karnataka
3.40
None for 10 yrs
Gujarat
3.50
None for 20 yrs
* Third Party Sale allowed subject to respective SERC regulation
21
Part C: Projects
Generation Projects Under Implementation
Maithon1050 MW
Jojobera 120 MW
Mundra 4000 MW
Maharashtra 98 MW
23
Thermal
5170 MW
Wind
98 MW
Capacity
• 4000 MW (5 x 800 MW)
Ownership Structure
• 100% subsidiary; Coastal Gujarat Power Limited
Business Model
• Case 2 – Bid Driven
Fuel Requirement
• Imported Coal, 11-12 mtpa
Fuel Source
• Offtake agreement with KPC and Arutmin for 10.11 ± 20%
• Looking for additional mines in Australia, Mozambique, S. Africa
Customers
• Gujarat (1805 MW), Maharashtra (760 MW), Punjab (475 MW),
Haryana (380 MW), Rajasthan (380 MW)
Funding
•
•
•
•
•
Completion
• Targeted by 2012 vs 2014 as per bid conditions
Project Cost: Rs 17,000 Cr (D/E: 75:25)
As of FY09: Debt drawn – Rs1700 Cr, Equity invested – Rs 950 Cr
Financial closure completed in April 08
Lenders: IFC, ADB, KEIC, KExim, SBI consortium
All pre-disbursement conditions completed
Mundra
UMPP
24
Current Status
• Overall 31% work completed; 6000 people on site
Construction
Activities
• Unit 1: 80% structural erection for boiler and TG deck complete
• Unit 2: 75% structural erection for boiler complete
• Unit 3, 4, 5: Progress on track
• Cooling water conduit laying ~ 50% done. PCC and RCC work for intake channel
and pump house is in progress
• Coal stockpile area paving and stacker reclaimer area foundation work in progress
• Agreement signed for CW system intake channel with Adani. Coal conveyer
alignment finalized and work on new coal jetty progressing
• PGCIL work for power evacuation progressing well
TG Unit Column 1
Switch Yard Control Bldg
Mundra
UMPP
25
Mundra – Site Photographs
26
Mundra – Site Photographs
Use of Heavy Equipment like this 1250 Ton Crane has accelerated project execution
27
Mundra – Site Photographs
Front view of Chimney and Boiler Structure
Cooling Water Pump House
28
Capacity
• 1050 MW (2 x 525MW)
Ownership Structure • 74: 26 JV of Tata Power and Damodar Valley Corporation
Business Model
Fuel Requirement
Fuel Source
• CERC Regulated
• Domestic Coal
• 100% linkage sanctioned. Active discussions on to sign Fuel Supply
Agreements with coal mines
Customers
• DVC (300 MW), NDPL (300 MW), WBSEB (150 MW), PSEB (300 MW)
Funding
• Project Cost: Rs 4450 Crores; (D/E: 70:30)
• Debt syndication completed
• As of FY09: Debt drawn – Rs 600 Cr, Equity invested – Rs 240 Cr
Expected Returns
• Regulated: 15.5% ROE + Performance Incentives
Completion
• Unit 1: 2010, Unit 2: 2011
Maithon
29
Current Status
• Over 60% of work completed
Construction
Activity
• Unit 1: Boiler drum lifting complete. Condenser erection started
• Unit 2: Boiler drum lifting complete
• Slip form erection for chimney completed till 183 m
• Intake channel pump house work on track
• Open access granted by PGCIL for evacuation of power and
transmission line connecting to grid on track
Milestones
• Commencement of turbine erection (U #1) Nov ‘09
• Commencement of turbine erection (U #2) Feb ‘10
Maithon
400 KV Switchyard
Column Casting
30
Maithon – Site Photographs
31
Jojobera #5
Project Capacity
• 120 MW
Ownership Structure
• IEL
Business Model
• CPP
Funding
• Project Cost: Rs 620 Crores
• D/E 70:30
Completion
• December 2009
Construction
Activity
• Over 72% completed
• 132kV switchyard foundation 90% complete
• Chimney shell erection complete
Project Description
• Fuel: Coal Linkage from West Bokaro
and Mahanadi Coal field.
Captive Power
Plants
32
Jojobera (Unit 5)
HP Heaters Under Erection
Boiler Erection in Progress
33
Captive Coal Blocks
Mandakini Coal Block
• 7.5 MTPA (jointly allotted with Jindal Photo Film and Monnet Ispat & Energy - each JV
Partner having a share of 2.5 MTPA) at Dist. Angul, Orissa
• Mining plan approved by MoC
• Application of ground water submitted to CGWA on Apr 09
• Environment Clearance, Acquisition of land, Forest Land Approval under process
• Coal Production – July 2011
Tubed Coal Block
• 5.75 MTPA [Jointly allocated with Hindalco at Latehar, Jharkhand – Hindalco (60%)
3.45 MTPA & Tata Power (40%) 2.30 MTPA]
• Submitted application for Environmental Clearance in Mar 2009
• Mining Plan submitted to MoC in Mar 2009
• Environment Clearance, Acquisition of land, Forest Land Approval under process
• Coal Production – Feb 2012
34
Other Projects in Pipeline
Generation
Project
Fuel Source
Capacity (MW)
Tubed IPP
Captive Coal - Tubed
500
Naraj Marthapur IPP
Captive Coal - Mandakini
1000
Corus (Tata Steel)
Production Gases (Corus)
525
Coastal Maharashtra (Dehrand)
Imported Coal
2400
Jharkhand CPP (Tata Steel)
Supply by Tata Steel
500
Naraj Marthapur CPP
Supply by Procurers
1270
Others
Mumbai License Area
Project Description
Distribution
- Infrastructure development for retail supply to new customers
Transmission
- Addition of new transmission lines, 1000 MVA transformer capacity for
increasing load and System upgradation to 400 kV
35
Generation Capacity (Tata Power Group)
10000
8242
2400
Added in the Year
8000
Total Capacity at Year End
Capacity
5842
1600
6000
4242
4000
2786
421
2000
3104
1138
318
2365
0
2008
2009
2010
2011
2012
Fiscal Year Ended (March 31st)
36
2013
Part E: Other Power Businesses
Indonesian Coal Mines
Offtake Agreement
Organizational Structure
• 10.1+ 20% MT on a take or pay basis
• 40% representation on the Board of
Commissioners and the Board of Directors
with affirmative rights
• Indocoal Resources (Cayman) agrees to
trade outside of India any coal that Tata
Power cannot use
• CFOs at KPC and Arutmin have been
nominated by Tata Power
• Delivery of coal shall start as per the predetermined start-up tonnage and contract
tonnage upon commissioning of new units.
This can be varied with advance notice.
• Representation on the Management
Committee
• Ability to ramp up the coal supply as per
commissioning of new units
38
Indonesian Coal Mines
CY08 Performance
• Quantity mined ~ 52.8MT
• Average realised price per tonne (FOB) – USD 73.28
• EBITDA from Operations – USD 1131 million
Source – Bumi Resources
Debt Repayment Schedule
Loan
Loan
Amount
(USD mn)
Amount
O/S
(USD mn)
Interest
Rate
Maturity
Repayment Details
Non- Recourse
590
454
1M LIBOR
+ 3.25%
May 2014
Bullet of USD 175 million
Recourse
270
270
6M LIBOR
+ 0.9%
May 2014,
2015
Two equal installments at end of
6th year and 7th year
Short Term
Recourse
70
70
6M LIBOR
+ 3%
July 2010
Bullet
39
Indonesian Coal Mines – Structure of Investment
Tata Power
Company Ltd.
(India)
Bhivpuri
Investments Ltd.
Bhira
Investments Ltd.
(Cyprus)
(Mauritius)
Indocoal
KPC
Arutmin
(Cayman Islands)
(Indonesia)
(Indonesia)
Bumi Resources
(Indonesia)
40
Shipping Subsidiaries
•
Trust Energy Asia Ltd incorporated in Singapore for owning ships to meet shipping requirements
and trading in fuels, Eastern Energy Private Ltd incorporated for chartering of ships
•
Present shipping requirements of 8 vessels for Mundra
•
To be met through a combination of long term charters and out right purchases of Capesize
vessels – 3 LT charters signed and 2 Korean build vessels purchased for delivery in 2011
•
Spare capacity may be used commercially
41
North Delhi Power Limited (NDPL)
PAT
Customer Base
Rs. crore
• >1 million customers with
5000 MUs of consumption
Business Model • Regulated
Revenue
• Rs 2479 Cr
Regulated
Equity
• Rs 685 Cr
ROE %
• 16% on capitalized asset
base
Incentives*
55
72
53
79
* Reset of Target AT&C losses after FY07 for next 5 years
** Includes Rs 220 cr of trued up depreciation income; Method of
depreciation has also changed FY09 onwards.
AT&C Losses (%) by Financial Year
Incentive
Structure
• Upto 15% of AT&C losses:
retain 50% of additional
revenue
• Further, retain total revenue
Dividend
• 14% (PY: 12% on enhanced
capital)
42
Powerlinks Transmission Limited
Capacity
PAT
• 1200 km 400 kV double-circuit
transmission lines
Rs. crore
Business Model • Regulated
Revenue FY09
• Rs 255 Cr
Regulated Equity • Rs 463 Cr
ROE %
• 14% (15.5% w.e.f 1st April, 2009)
Incentive
Structure
• As a percent of equity on availability
Dividend
• 10% (PY: 8%)
above Target of 98%
Incentives
43
-
3.7
8.4
Tata Power Trading Company Limited
TPTCL Sales (MU)
4000
TPTCL is currently the third largest trading
company with 9.26% market share
3000
2000
FY09: Revenue – Rs 2167.3 Cr,
PAT – Rs 7.6 Cr,
Dividend – 20% (PY: 20%)
1000
0
FY05
FY06
FY08
FY07
FY09
16000
14000
12000
10000
6000
4000
Spot High and Average price of power traded on Indian Energy Exchange
2000
High
Avg
44
20-May
16-May
12-May
8-May
4-May
30-Apr
26-Apr
22-Apr
18-Apr
14-Apr
10-Apr
6-Apr
2-Apr
29-Mar
25-Mar
21-Mar
17-Mar
13-Mar
9-Mar
5-Mar
1-Mar
25-Feb
21-Feb
17-Feb
13-Feb
9-Feb
5-Feb
0
1-Feb
INR / MWh
8000
Part F: Other Businesses
Strategic Electronics Division (SED)
•
•
Revenues of Rs.101 crores (Mar 09) against Rs.55 crores during the previous year.
•
SED completed the delivery of Air Defence Systems based on Commercial - Off - The - Shelf
technology to all the 16 designated sites, with Installation and Commissioning completed at 13 sites.
•
•
•
Defence spend over Rs. 400 bn, 40% indigenous. Expected growth ~ 15%.
First batch of Pinaka Launchers was successfully subjected to Factory Acceptance Tests (FAT) by the
Ministry of Defence
SED is fast emerging as a Prime Contractor to MoD for Indigenous Defence Products.
SED part - completed Phase I of its factory upgrade with state - of - the - art facilities covering
Assembly, Testing and System Integration, Protoshop, Clean Rooms, etc. and is currently working
towards setting up of an advanced EMI - EMC Test facility and an upgraded training infrastructure.
46
Tata BP Solar
•
•
51:49 JV between BP Solar and Tata Power
•
The turnover of the Co. in India and SAARC region is about Rs. 270 crores. With
exports to BP Solar accounting for about Rs. 877 Crores
•
•
Nearly 75% of sales from exports largely to Europe and USA
Market leader in Solar Photovoltaic technology in India with a turnover of Rs 1147
crores in FY09
Plant with Solar cell manufacturing Facility with installed capacity of 46 MW and
Module Manufacturing Facility with installed capacity of 88 MW as of March 09
47
Part G: Financial Performance
Standalone - Year Ended March 31, 2009
Rupee in Billions
FY09
FY08
Operating Income
72.36
59.16
(61.17)
(49.86)
Operating Profit
11.19
9.37
Interest & Finance Charges
(3.06)
(1.68)
Depreciation
(3.29)
(2.91)
Other Income
4.88
4.66
Profit Before Tax
11.16
9.70
Provision for Taxes
(1.95)
(1.00)
Profit After Tax
9.22
8.70
Statutory Appropriations
0.45
(0.59)
Profit After Statutory Appropriations
9.67
8.11
Operating Expenditure
Dividend: FY 09 – 115%, FY 08 – 105%, Equity Share Capital – Rs.221 Cr
49
Standalone – Q1 FY 10
Rupee in Billions
Q1 FY10
Q1 FY09
Operating Income
20.16
20.26
(13.83)
(17.21)
6.33
3.05
Interest & Finance Charges
(1.18)
(0.52)
Depreciation
(1.11)
(0.73)
Other Income
1.08
0.87
Profit Before Tax
5.10
2.67
(1.33)
(0.76)
3.77
1.91
(0.20)
0.28
3.97
1.63
Operating Expenditure
Operating Profit
Provision for Taxes
Profit After Tax
Statutory Appropriations
Profit After Statutory Appropriations
50
Consolidated - Year Ended March 31, 2009
Rupee in Billions
FY09
FY08
Operating Income
175.88
108.91
(143.22)
(88.02)
Operating Profit
32.66
20.89
Interest & Finance Charges
(7.09)
(4.99)
Depreciation
(6.57)
(5.59)
Other Income
3.99
4.79
Profit Before Tax
24.64
15.53
Provision for Taxes
(11.65)
(3.76)
Profit Before Minority Interest
12.99
11.77
Minority Interest/ Associates
(0.79)
(1.22)
Profit After Minority Interest
12.19
10.55
Statutory Appropriations
0.45
(0.59)
Profit After Statutory Appropriations
12.64
9.96
Operating Expenditure
51
Consolidated – Q1 FY 10 (Unaudited)
Rupee in Billions
Q1 FY10
Q1 FY09
Operating Income
47.13
40.69
(35.07)
(33.71)
Operating Profit
12.07
6.98
Interest & Finance Charges
(2.06)
(1.48)
Depreciation
(2.01)
(1.52)
Other Income
0.69
0.63
Profit Before Tax
8.68
4.61
(2.85)
(1.90)
Profit Before Minority Interest
5.83
2.71
Minority Interest/ Associates
(0.30)
(0.23)
Profit After Minority Interest
5.53
2.48
(0.20)
0.28
5.73
2.20
Operating Expenditure
Provision for Taxes
Statutory Appropriations
Profit After Statutory Appropriations
52
Equity Requirement till FY12
Rs crores
Project
FY10
FY11
FY12
Mundra
804
1271
1229
Maithon
500
249
-
Tubed Coal SPV
17
21
33
Mandakini Coal SPV
10
15
34
-
68
-
Daggacchu
44
19
7
Standalone Capex
425
410
419
Total
1800
2053
1722
Shipping SPV
53
Funding Requirement
Own Funds
(Rs.5,500 Crores)
Debt
(Rs.18,100 Crores)
• Internal accruals: Rs.2800 Crores
• Domestic loans through domestic
financial institutions, banks and
capital markets
• GDR proceeds: Rs. 1600 Crores
• Options being evaluated for the
balance requirement
• Foreign loans through external
Credit Agencies and Multilateral
Agencies: ADB, IFC
• Of the required debt, Rs. 14,000
Crores will be drawn from debt
already arranged
Total Fund Requirement (from Apr 2009 to Mar 2012 for Projects under
Implementation): Rs.23,600 Crores
54
Tata Power – Financials (Standalone)
Annual Sales (MU)
Profit After Tax (In Billion Rs.)
EPS (in Rs.)
Net Worth (In Billion Rs.)
55
Tata Power – Financials (Consolidated)
Profit After Tax (In Billion Rs.)
EPS (in Rs.)
Net Worth (In Billion Rs.)
56
Dividend History
50
45
Rs
40
50
Dividend (Rs)
EPS (Rs)
Payout Ratio (%)
45
40
35
35
30
30
25
25 %
20
20
15
15
10
10
5
5
0
0
FY05
FY06
FY07
57
FY08
FY09
Part H: Sustainability
The climate change problem is a very real
threat to the world
• Continued greenhouse gas emissions at or above current rates would cause
further warming by 1.8°C (low scenario), to 4.0°C (high scenario)
• Power sector is a significant contributor (24% share of GHG emissions as of
2005 and 38% by 2030 under BAU scenario) and must contribute towards
abatement
Source :The IPCC Fourth Assessment Working Group Reports: Key findings, Presentation by Mr Arne Mogren, Head of Climate Policy at Vattenfall, Stockholm, September 2007
Initiatives Under Planning
POWER VALUE CHAIN
Fuel
Energy
Fuel
Cleaning
Carbon
Capture &
Storage
Generation
Equipment
Transmiss
ion
Distribution
Customer
End
KEY FEATURES
• Fossil fuels –
coal/gas
• Renewables
- Wind
- Solar
- Geothermal
• Clean coal
technology
• Brown coal
to Black
• Conversion
efficiency
• Low aux
consumption
• Super-critical
technology
• Renewables
- Wind
- Solar
- Geothermal
• Carbon
sequestratio
n
• Reduce
losses
• Decentralize
d plants, cogen, tri-gen
• Reduce
losses
• Smart grid
• Smart
metering
• Conservation
• DSM
• Efficiency
• Large
addition in
low carbon
generation
• Import of
low Ash and
low Sulphur
Coal
• Investment
in Exergen
• Thrust on
Super
Critical
Technology
• Continuous
Operational
Improvement
• To be first
tested in
Trombay
• Gain first
mover
advantage
• Continuous
Improvement
in efficiency
• DDG thrust
• Reduction in
AT&C losses
• Metering &
efficiency
management
• Tata Power
Energy Club
• Awareness
among
school
children
Our Sustainability Initiatives
• Trombay SO2 emission of 24TPD (1330MW) - one of the most stringent
• Forum of 46 global companies: New policy framework on Combating
Climate Change (3C)
• Carbon Footprint calculation for the Company completed
• Sustainability Council formed - 17 CDM Projects Identified
• Utilization of waste hot gases from steel plants for power generation
Thrust on Renewables
• Wind: Exploring newer technologies and development options
• Solar: Developing technical solutions.
• Geothermal: Opportunities in Australia and India
• Hydro Power: Furthering development in hydro with a European Hydro
power producer
• Nuclear: Preparing ground work for future.
• Gas: Evaluating options to convert existing oil units to gas
• Clean Coal Technology: Exergen – Drying Brown Coal
Various Technologies being Explored
• Solar Concentrated Thermal (SCT)
• Geo Thermal energy
• Coal Bed Methane (CBM)
• Coal beneficiation technologies
Demand Side Management and
Energy Conservation
• Tata Power Energy Club formed for curbing energy wastage through school children.
The Club has sensitised over 50,000 students across India who have sensitised over
75,000 people in their community
• Energy conservation awareness campaigns for Customers & Schools
• DSM Workshop conducted for all utilities in Maharashtra
Our initiatives on DSM and Energy
Conservation