- At Rs 525 crore, provisional EBITDA in FY16 up by 163%, compared to Rs 199 crore in FY15.
- FY16 EBITDA margin is 28% compared to 11% in FY15, up by17%
- Company initiated reverse e-auction for coal procurement, which widened the supplier base, increased competition and helped reduce sourcing cost
- Upgraded investment grade rating to BBB-
- Ongoing PPA with country’s highest rated discom GUVNL (Rating A1+) for 90% of the capacity, ensuring timely payment of receivables
Mumbai, Delhi , Devbhumi Dwarka, 11 May 2016: Essar Power Gujarat Ltd (EPGL), which owns and operates a 1,200 MW imported coal fired thermal power plant at Salaya in Gujarat’s Devbhumi Dwarka district, has recorded a 163% growth in EBITDA in the financial year ending 31 March 2016—within three years since commissioning.
Financial Snapshot (Provisional)
The Salaya plant meets 9% of Gujarat state’s overall power demand. EPGL posted an EBITDA of Rs 525 crore, compared to Rs 199 crore in the previous fiscal—an increase of over 163%. The PAT is around Rs 35 crore, compared to a loss of Rs 684 crore in FY15. This turnaround in performance is attributed to higher operational efficiency, a reduction in coal prices through e-auction based procurement and normative plant availability.
A key factor driving financial performance, the reverse e-auction platform set up by EPGL helped widen the coal supplier base for the company. Vendors from the US, Russia, Columbia and other countries placed competitive bids in a transparent manner. Global competition helped EPGL source coal at prices lower than those prevailing in the market.
For the third consecutive year, EPGL ensured 80% availability for its single largest client, Gujarat Urja Vikas Nigam Ltd, the state-owned power distributor with whom it has a 25-year PPA.
EPGL has aligned the repayment of the term loan to the life of the power plant under 5/25 scheme of RBI. Company has also upgraded its investment grade rating to BBB-, which will enable it to reduce its interest rates going forward.
The Salaya plant is among the best operated power plants in the country. EPGL has received several accolades for operational efficiency including the CII Award for Energy Efficiency, the Gold Category Award for Safety from Greentech Foundation and the Peabody Award for lowest emission of SO2 and NOX.
According to Mr Ramesh Kumar, Managing Director: “I am delighted with EPGL’s performance. We have worked relentlessly amid a challenging business environment to deliver more than a 150% jump in EBITDA. We are on course to harness greater efficiencies in the current financial year once the sea water intake system and coal conveyor corridor are commissioned. These are expected to add Rs 150 crore to the EBIDTA. We therefore expect better operational efficiency, which will sustain and improve performance in FY17.”
About Essar Power Ltd
Essar Power Ltd is one of India's top five private sector power producers with over 20 years’ operating track record. It owns power plants in India and Canada with a total generation capacity of 6,100 MW, of which 4,675 MW is operational. Of the total operational capacity, 3,075 MW is coal-based, while 1,600 MW is gas-based. The operating plants in India are at Mahan, Hazira, Salaya and Vadinar. A 1,200 MW plant at Tori in Jharkhand state is under development.
Manish Kedia, Senior Vice President - Corporate Affairs, Essar
Phone: +91 98197 30092, Email: firstname.lastname@example.org
Ravi Muthreja, Vice President - Corporate Communication, Essar
Phone: + 91 99301 34566, Email : Ravi.Muthreja@essar.com