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Interim results for the six months ended 30 June 2014
Financial Highlights for the period include:
· Revenue of USD 29.4 million, an increase of 7.4% over the comparative period (1H 2013: USD 27.4 million)
· Earnings before interest, taxes, depreciation and amortisation for the period amounted to USD 28.01 million, an increase of 11.6% over the comparative period (1H 2013: USD 25.12 million)
· An EBITDA margin of approximately 95.2%1 (1H 2013: 91.6%2)
· Profit before tax (PBT) of USD 5.91 million, an increase of 12.8% over the previous period (1H 2013: PBT of USD 5.21 million)
· Achieved 7.4% increase in revenue, 11.3% increase in EBITDA and 12.8% increase in PBT, excluding exceptional1 items, despite depreciation in the average Indian Rupee/USD exchange rate by 10.4% from 54.9 to 60.6 from June 2013 to June 2014
· Tax expense of USD 0.54 million (1H 2013: USD 0.79 million). The tax expense is primarily non-cash in nature and represents a net deferred tax liability on timing differences net of earlier year tax provision written back on completion of tax assessment
· In Indian Rupee terms revenue increased by 18.6%, EBITDA by 23.3%, and PBT by 24.6%. This is in line with increase in weighted average operating capacity
· Adequate liquidity position comprising of USD 16.5 million cash equivalents and liquid investments and undrawn loan facilities of USD 20 million to fund the current under construction pipeline
· USD 24.6 million invested in new capacity additions
Current Operational Highlights:
· 524.85 MW (including 8.35 MW capacity under stabilisation) of revenue generating wind assets and 23.25 MW under final stages of construction
· Assets have performed well at the start of the 2014 wind season despite some press reports suggesting a late and weak monsoon due to an El Nino effect. Plant Load Factors were slightly below average during May, but above average during June, July and August
· Strong receivable position with no significant payment delays
· Post period end, secured in principal approval of USD 142 million senior loans for projects under active development
1Excluding one-off doubtful advances and LD claims write-off of USD 2.1 million (30 June 2013: USD nil) and non-cash cost relating to employee stock options of USD 0.51 million (30 June 2013: USD 0.58 million) (note 25).
2Adjusted for one-off costs of USD 0.63 million incurred during the previous year, relating to un-eliminated indirect tax cost on eliminated intra-group transactions.
Ravi Kailas, Chairman and CEO said:
“From a standing start three years ago, Mytrah has grown to be one of the largest wind independent power producers (“IPPs”) in India. The first half has been a strong period of asset growth for the Company with operational capacity increased significantly to 497.35 MW at 30 June 2014 and additional capacity of 27.5 MW was added post interim period end. This takes our total operational portfolio over the landmark of 500 MW to a total capacity of 524.85 MW (including 8.35 MW capacity under stabilisation) and has been achieved within a span of less than three years of operations. This additional generating capacity represents a 70% increase since 30 June 2013, when the operating capacities stood at 309 MW. These assets have been installed with one of the lowest capital costs in the industry and have performed above our initial expectations.
“The beginning of the wind season this year started slowly with capacity factors in May being below average. However since then we have seen a pick up in the utilisation rates across the portfolio, particularly during July and August, and we at this point in time we expect this year’s total PLF to be in line with our expectations. As we have mentioned previously, the benefits of a large and diversified portfolio are significant and provide very visible long-term revenue that is highly predictable on a year by year basis.
“The stabilised sites are performing well ahead of our initial expectations, in some cases exceeding P50 estimates, with machine and grid availability in excess of 97%. Mytrah’s new assets at Burgula in Andhra Pradesh (37.4 MW), Savalsang 1 in Karnataka (87.55 MW) and Vagarai in Tamil Nadu (90 MW) are expected to be amongst the Group’s strongest performing assets and are all performing well during and after their stabilisation periods.
“The interim figures reflect the slower start to the wind season this year but as we have seen an increase in the capacity factors since the period end, we would expect that the annual performance will be in line with our expectations.
“In an environment of ever increasing demand for power in India, the attraction of developing, owning and operating a diversified portfolio of wind assets puts Mytrah in a strong position for profitable and sustained growth. We believe that Mytrah’s continued access to financing in India, from established relationships with major lenders in public and private sectors and our access to land facilities, enables us to take greater control over our roll-out schedule. Our diversified range of strong partnerships with domestic and overseas wind turbine manufacturers, our ability to build assets at a competitive cost whilst managing development risk, and the quality of our management and teams, will enable the Group to continue to grow rapidly and generate significant value for our shareholders.”
