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Sector Review: Utilities

Sector Review: Utilities
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First Published: Thu, Apr 09 2009. 10 02 AM IST

Updated: Thu, Apr 09 2009. 10 02 AM IST
The country added only 4.6GW during FY09 against the targeted addition of 11GW, 42% of the target, once again missing its target.
During January and February India commercialized 644MW of generation capacity. NTPC commenced its 2nd 500MW unit at Kahalgaon in January.
This coupled with the 500MW Sipat unit (which was commercialized at the end of Q3 FY09) enabled NTPC to generate 56.9BU, thus making this the best every quarterly generation for the company.
Also, Tata Power commercialized its 250MW Trombay unit towards the end of the quarter, thus taking the overall capacity addition for Q4 FY09 to ~900MW.
High peak deficit, should allow generators to operate at high PLFs. Operating at high PLFs should translate into robust generation for NTPC, Tata Power and CESC.
However, profit growth will largely remain subdued as capacity addition continued to remain low. Tata Power’s profit for the quarter will be boosted by Rs3.2 billion of other income accruing from the sale of its stake in its group company Tata Teleservices.
CESC has also not added any capacity but improved operational efficiency will translate into flattish profit.
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First Published: Thu, Apr 09 2009. 10 02 AM IST
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