Investors

PART I : Statement of Standalone Unaudited Financial Results for the Quarter and Half-Year ended 30^thSeptember 2014

( in Lakhs)

Sl. No.	Particulars	Quarter ended 30.09.2014 (Unaudited)	Quarter ended 30.06.2014 (Unaudited)	Quarter ended  30.09.2013  (Unaudited)	Half-Year ended  30.09.2014 (Unaudited)	Half-Year ended  30.09.2013 (Unaudited)	Year ended 31.03.2014 (Audited)
1	2	3	4	5	6	7	8
1	Income from operations
	(a) Net sales (net of electricity duty)	1658236	1808647	1627227	3466883	3188516	7160263
	(b) Other operating income	15427	25028	17663	40455	25781	41630
	Total income from operations (net)	1673663	1833675	1644890	3507338	3214297	7201893
2	Expenses
	(a) Fuel cost	1143933	1276513	1013925	2420446	1956508	4582971
	(b) Employee benefits expense	91801	91841	82817	183642	176064	382478
	(c) Depreciation and amortisation expense	115158	111547	96794	226705	191027	414219
	(d) Other expenses	113696	111875	121276	225571	221802	455669
	Total expenses	1464588	1591776	1314812	3056364	2545401	5835337
3	Profit from operations before other income, finance costs and exceptional items (1-2)	209075	241899	330078	450974	668896	1366556
4	Other income	53069	53256	62719	106325	130785	264568
5	Profit from ordinary activities before finance costs and exceptional items (3+4)	262144	295155	392797	557299	799681	1631124
6	Finance costs	66741	66791	62046	133532	123787	240659
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)	195403	228364	330751	423767	675894	1390465
8	Exceptional items	-	-	-	-	-	-
9	Profit from ordinary activities before tax (7+8)	195403	228364	330751	423767	675894	1390465
10	Tax expenses:
	(a) Current tax (Refer note 4)	(2188)	(1328)	73575	(3516)	160690	279360
	(b) Deferred tax	9446	9572	7886	19018	13212	13631
	(c) Less: Deferred tax recoverable (refer note 5)	19018	-	-	19018	-	-
	Total tax expense (a+b-c)	(11760)	8244	81461	(3516)	173902	292991
11	Net profit from ordinary activities after tax (9-10)	207163	220120	249290	427283	501992	1097474
12	Extraordinary items (net of tax expense)	-	-	-	-	-	-
13	Net profit for the period (11-12)	207163	220120	249290	427283	501992	1097474
14	Paid-up equity share capital  (Face value of share 10/- each)	824546	824546	824546	824546	824546	824546
15	Paid-up debt capital				6956529	6062944	6717022
16	Reserves excluding revaluation reserve as per balance sheet						7756986
17	Debenture redemption reserve				257916	229958	276491
18(i)	Earnings per share (before extraordinary items) - (of  10/- each)(not annualised) (in ):
	(a) Basic	2.51	2.67	3.03	5.18	6.09	13.31
	(b) Diluted	2.51	2.67	3.03	5.18	6.09	13.31
18(ii)	Earnings per share (after extraordinary items) - (of  10/- each) (not annualised) (in ):
	(a) Basic	2.51	2.67	3.03	5.18	6.09	13.31
	(b) Diluted	2.51	2.67	3.03	5.18	6.09	13.31
19	Debt equity ratio				0.77	0.71	0.78
20	Debt service coverage ratio (DSCR)				2.05	2.55	2.77
21	Interest service coverage ratio (ISCR)				5.95	8.12	8.62

See accompanying notes to the financial results

PART II : Select Information for the Quarter and Half-Year ended 30^th September 2014

Standalone Statement of Assets and Liabilities

( in Lakhs)

Segment-wise Revenue, Results and Capital Employed for the Quarter and Half-Year ended 30^th September 2014

( in Lakhs)

Notes:

1. These results have been reviewed by the Audit Committee of the Board of Directors and approved by the Board of Directors in their respective meetings held on 31^st October 2014.

2. (a) The Central Electricity Regulatory Commission (CERC) notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). Pending issue of provisional/final tariff orders w.e.f. 1^st April 2014 for all the stations, beneficiaries are billed in accordance with the tariff approved and applicable as on 31^st March 2014 as provided in the Regulations,2014. The amount billed for the quarter and half-year ended 30^th September 2014 is  17,06,905 lakh and  35,98,039 lakh respectively (corresponding previous quarter and half-year  15,85,188 lakh and  31,35,657 lakh).

(b) The Company has filed a petition before the Hon'ble High Court of Delhi contesting certain provisions of the Regulations 2014. Pending issue of provisional/final tariff orders under Regulations, 2014 by CERC and disposal of the petition, sales have been provisionally recognised at  17,04,549 lakh and for the quarter and  35,63,035 lakh for the half-year ended 30^th September 2014 (corresponding previous quarter and half-year  16,10,953 lakh and  31,39,324 lakh) on the basis of said Regulations.

(c) Sales include  9,010 lakh for the quarter and  32,017 lakh for the half-year ended 30^th September 2014 (corresponding previous quarter and half-year  11,754 lakh and  31,826 lakh ) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity . Sales include (-)  60,502 lakh for the quarter and(-)  1,38,923 lakh for the half-year ended 30^th September 2014 (corresponding previous quarter and half-year  Nil and  8,110 lakh) on account of income tax refundable to / recoverable from the beneficiaries as per Regulations, 2004. Sales also include  2,952 lakh for the quarter and  5,904 lakh for the half-year ended 30^th September 2014 (corresponding previous quarter and half-year  1,892 lakh and  3,784 lakh) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.

3. During the quarter, in line with the accounting policy on advance against depreciation, excess of depreciation charged in the books over the depreciation recovered in tariff, amounting to  20,824 lakh upto 31^st March 2014 has been recognised as prior period sales and netted from 'Other Expenses'.

4. Provision for current tax for the period includes tax related to earlier years amounting to (-)  56,330 lakh and (-)  128,893 lakh respectively (corresponding previous quarter Nil).

5. Regulations, 2014 provides recovery of income tax from the beneficiaries by grossing up of the return on equity based on effective tax rate for the financial year i.e. based on the actual tax paid during the year on the generation income. Accordingly, deferred tax provided during the quarter and half-year ended 30^th September 2014 on the generation income is accounted as 'Deferred tax recoverable' as the same will be recovered from the beneficiaries in future years.

6. Government of India has promulgated Coal Mines (Special Provisions) Ordinance, 2014 (Ordinance) on 21^st October 2014 wherein five coal blocks allotted to the Company have been cancelled. As per Section 5 of the said Ordinance, the cancelled coal blocks may be allotted to a Government Company subject to fulfillment of certain conditions. The detailed modalities in this regard are yet to be framed by the Government. The Company expects the allotment of the cancelled coal blocks in its favour. Accordingly, the Company considers the expenditure incurred on these coal blocks as good.

7. The Company has revised the accounting policy for depreciation of certain assets in alignment with Schedule-II to the Companies Act, 2013 which has become applicable from 1^st April 2014. Consequently, profit for the quarter and half-year ended 30^th September 2014 is lower by  359 lakh and  2,57,875 lakh as at 31^st March 2014), an amount of  826 lakh respectively and fixed assets as at 30^th September 2014 are lower by  1,373 lakh . Further, an amount of  22,386 lakh (547 lakh has been recognized in the opening balance of the retained earnings where the remaining useful life of such assets is Nil as at 1^st April 2014 in line with the provisions of Schedule-II to the Companies Act, 2013.

8.Other non current assets as at 30^th September 2014 include  45,504 lakh (  42,600 lakh as at 31^st March 2014) 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. 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.

9. 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 of transferred to expenditure during construction.

10. During the quarter, the Company has paid final dividend of  1.75 per share (face value of  10/- each) for the financial year 2013-14.

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

12. 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: 31^st October, 2014

(K. BISWAL)
DIRECTOR (FINANCE)