Investors

PART I : Statement of Standalone Unaudited Financial Results for the Quarter and Half-Year ended 30^th September 2013

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Sl. No.	Particulars	Quarter ended 30.09.2013 (Unaudited)	Quarter ended 30.06.2013 (Unaudited)	Quarter ended 30.09.2012 (Unaudited)	Half-Year ended 30.09.2013 (Unaudited)	Half-Year ended 30.09.2012 (Unudited)	Year ended 31.03.2013 (Audited)
1	2	3	4	5	6	7	8
1	Income from operations
	(a) Net sales (net of electricity duty)	1627227	1561289	1611967	3188516	3207963	6431638
	(b) Other operating income	14317	4896	23166	19213	43765	135755
	Total income from operations (net)	1641544	1566185	1635133	3207729	3251728	6567393
2	Expenses
	(a) Fuel cost	1013925	942583	993266	1956508	2053038	4101825
	(b) Employee benefits expense	83795	94250	89950	178045	169322	336012
	(c) Depreciation and amortisation expense	96794	94233	78652	191027	154674	339676
	(d) Other expenses	118630	97928	106629	216558	200729	418150
	Total expenses	1313144	1228994	1268497	2542138	2577763	5195663
3	Profit from operations before other income, finance costs and exceptional items (1-2)	328400	337191	366636	665591	673965	1371730
4	Other income	64397	69693	81960	134090	150159	310158
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	392797	406884	448596	799681	824124	1681888
6	Finance costs	62046	61741	30346	123787	80281	192436
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)	330751	345143	418250	675894	743843	1489452
8	Exceptional items	-	-	-	-	-	168411
9	Profit from ordinary activities before tax (7+8)	330751	345143	418250	675894	743843	1657863
10	Tax expense:
	(a) Current tax	73575	87115	101127	160690	169359	368084
	(b) Deferred tax	7886	5326	2888	13212	10382	27840
	Total tax expense (a+b)	81461	92441	104015	173902	179741	395924
11	Net profit from ordinary activities after tax (9-10)	249290	252702	314235	501992	564102	1261939
12	Extraordinary items (net of tax expense)	-	-	-	-	-	-
13	Net profit for the period (11-12)	249290	252702	314235	501992	564102	1261939
14	Paid-up equity share capital (Face value of share  10/- each)	824546	824546	824546	824546	824546	824546
15	Paid-up debt capital				6062944	5387444	5814630
16	Reserves excluding revaluation reserve as per balance sheet						7214205
17	Debenture redemption reserve				229958	215329	253533
18 (i)	Earnings per share (before extraordinary items) - (of 10/- each)(not annualised) (in ):
	(a) Basic	3.03	3.06	3.81	6.09	6.84	15.30
	(b) Diluted	3.03	3.06	3.81	6.09	6.84	15.30
18(ii)	Earnings per share (after extraordinary items) - (of 10/- each) (not annualised) (in):
	(a) Basic	3.03	3.06	3.81	6.09	6.84	15.30
	(b) Diluted	3.03	3.06	3.81	6.09	6.84	15.30
19	Debt equity ratio				0.71	0.68	0.72
20	Debt service coverage ratio(DSCR)				2.55	3.13	3.17
21	Interest service coverage ratio(ISCR)				8.12	12.05	10.39

See accompanying notes to the financial results.

PART II : Select Information for the Quarter and Half-Year ended 30^th September 2013

Standalone Statement of Assets and Liabilities

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Segment-wise Revenue, Results and Capital Employed for the Quarter and Half-Year ended 30^thSeptember 2013

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The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

1. The above results have been reviewed by the Audit Committee of the Board of Directors in the meeting held on 28^thOctober 2013 and approved by the Board of Directors in the meeting held on 29^th October 2013.

2. (a) The Central Electricity Regulatory Commission (CERC) notified the Tariff Regulations, 2009 in January 2009, and First, Second and Third Amendments thereto in May 2011, June 2011 and December 2012 respectively (Regulations, 2009). In line with the Regulations, 2009, the CERC has issued provisional/final tariff orders w.e.f. 1^st April 2009 for all the stations except Talcher Thermal Power Station (TTPS). Beneficiaries are billed in accordance with the said provisional/final tariff orders except for TTPS where it is done on provisional basis. The amount billed for the quarter and half-year ended 30^th September 2013 on this basis is  15,85,188 lakh and  31,35,657 lakh respectively (corresponding previous quarter and half-year  14,91,244 lakh and  30,74,193 lakh).

(b) In respect of stations for which the CERC has issued final tariff orders under the Regulations, 2009, and Renewable Energy Regulations, 2009, sales for the quarter and half-year ended 30^th September 2013 have been recognised at 14,92,454 lakh and  29,41,183 lakh respectively (corresponding previous quarter and half-year  14,27,133 lakh and  29,70,267 lakh) after truing up capital expenditure to arrive at the capacity charges. For other stations, pending determination of station-wise final tariff by the CERC, sales for the quarter and half-year ended 30^th September 2013 have been provisionally recognized at  1,18,499 lakh and  1,98,141 lakh respectively (corresponding previous quarter and half-year  48,717 lakh and  92,372 lakh) on the basis of principles enunciated in the said Regulations, 2009 after truing up capital expenditure to arrive at the capacity charges.

(c) (i) Sales include  11,754 lakh and  31,826 lakh respectively for the quarter and half-year ended 30^th September 2013 (corresponding previous quarter and half-year  1,02,372 lakh and  1,13,360 lakh) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

(ii) Sales include  Nil and  8,110 lakh respectively for the quarter and half-year ended 30^th September 2013 (corresponding previous quarter and half-year  29,213 lakh and  23,332 lakh) on account of income tax recoverable from the beneficaries as per Regulations, 2004. Sales also include  1,892 lakh and  3,784 lakh repectively for the quarter and half-year ended 30^th September 2013 (corresponding previous quarter and half-year  1,190 lakh and 2,379 lakh) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2009.

3. Vide gazette notification F no.22021/1/2008-CRC/II dated 30.12.2011 issued by Ministry of Coal, grading and pricing of non-coking coal was migrated from Useful Heat Value (UHV) to Gross Calorific Value (GCV) based system w.e.f. 1^stJanuary 2012. The Coal Supply Agreements entered into by the Company were required to be amended to incorporate acceptable procedures for sample collection, preparation, testing and analysis, to facilitate such migration, which are still pending. The Company's Board of Directors approved payments to the coal companies based on the GCV based pricing system, and directed to frame modalities for implementation of GCV based grading system. Accordingly, modalities were framed to effect joint sampling and testing of coal at mine end/station end and future payments to coal companies. The above modalities were communicated to the coal companies w.e.f. October/ November 2012, thereafter the Company released payments on the basis of GCV measured at station end following the implementation of the said modalities since variation in the GCV of coal supplied and received at power stations was noticed. The Company regularly informed coal companies about this variation which has not been accepted by them. The issue has been taken up with the coal companies directly and through the Ministry of Power and Ministry of Coal, GOI for resolution. Pending resolution of the issue, difference between the amount billed by the coal companies and the amount admitted by the company amounting to  4,06,512 lakh upto 30^th September 2013 ( 2,53,110 lakh upto 31^st March 2013) has been considered as contingent liability with corresponding possible reimbursements from the beneficiaries.

4. Other current assets as at 30^th September 2013 include  42,896 lakh ( 89,472 lakh as at 31^st March 2013) recoverable from Government of India (GOI) towards the cost incurred in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power, GOI. During the quarter, a payment of  53,630 lakh has been recieved from GOI on this account in the first phase. Management expects that the total cost incurred, anticipated expenditure on safety and stabilization measures, other recurring site expenses and interest costs as well as claims of various contractors/vendors for this project, will be compensated in full by the GOI. Hence no provision is considered necessary.

5. Formula used for computation of coverage ratios - DSCR = Earning before Interest, Depreciation, Tax and Exceptional Items/ (Interest net of transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional Items/Interest net off transferred to expenditure during construction.

6. During the quarter, the Company has paid final dividend of  2.00 per share including a special dividend of  1.25 per share (face value of  10/- each) for the financial year 2012-13.

7. The above financial results have been reviewed by the Statutory Auditors as required under Clause 41 of the Listing Agreements.

8. Figures for the previous periods/year have been regrouped/rearranged wherever necessary.

For and on behalf of the Board of Directors

Place: New Delhi
Date 29^th October 2013

(Dr. Arup Roy Choudhury)
Chairman & Managing Director