Annual report and accounts
FY 2015

We are focused on completing the Talwandi Sabo power plant project. We also anticipate that with the improvement in the economic climate and industrial performance, demand and hence the open market price for power is expected to recover over the next few years.

S.K. Roongta, CEO, Power

Over the next 12 months, we are focusing on enhancing access to power transmission facilities and completing the 1,980MW Talwandi Sabo power project.


Key metrics

Switchyard, 2,400MW Jharsuguda Power Plant.

Employees at 2,400MW Power Plant.

Results

During the year:

  • 2,400MW power plant had lower plant load factor of 39% due to lower market demand.
  • Average power generation costs improved due to lower coal costs.
  • Commissioned first unit of Talwandi Sabo Power Plant.

Turbine at Talwandi Sabo Power Plant.

The Jharsuguda 2,400MW power plant operated at a lower Plant Load Factor (PLF) of 39% during FY2015 due to lower market demand and transmission constraints for some regions. However, during FY2016 capacity utilisation is expected to go up significantly as we ramp-up the plant for additional aluminium pot-lines.

Out of the two 300MW units of the 1,200MW Korba Power Plant destined for commercial power, one 300MW unit is currently under trial run, and will be commissioned during Q1 FY2016; the second commercial unit is expected to be commissioned during Q2 FY2016.

At the Talwandi Sabo power plant, the first 660MW unit has started commercial power generation with another unit synchronised. The 1,980MW power plant is expected to ramp-up to capacity during FY2016.

FY2015 FY2014 % Change
Power Sales (MU) 9,859 9.374 5.2%
MALCO and Wind Energy 1,341 1,359 1.3%
BALCO 270MW 89 390 (77.2)%
600MW1 10
Jharsuguda 2,400MW 7,206 7,625 (5.5)%
Talwandi Sabo (TSPL)2 1.213
  • 1 Includes production under trial run 10 million units in FY2015.
  • 2 Includes production under trial run 264 million units in FY2015.

Average power sale prices were lower in FY2015 at 5.3 US cents per unit compared with 5.9 US cents per unit in the previous year due to lower demand.

During FY2015, average power generation costs improved, falling to 3.5 US cents per unit compared with 3.7 US cents per unit in the previous year on account of a lower coal cost.

FY2015 FY2014 % Change
Sales realisation (US cents/kwh) 5.3 5.9 (9.1)%
Cost of production (US cents/kwh) 3.5 3.7 (5.2)%

EBITDA remained at a similar level despite lower demand and tariffs, following additional power sold from the newly commissioned unit at the Talwandi Sabo power plant.

FY2015 FY2014 % Change
Revenue 671.9 621.7 8.1%
EBITDA 153.8 168.4 (8.7)%
EBITDA margin (%) 22.9% 27.1%
Depreciation and amortisation 65.8 99.1 (33.6)%
Operating profit before special items 88.0 69.4 26.8%
Share in Group operating profit (%) 5.1% 3.0%
Capital expenditure 142.2 288.9 (50.8)%
Sustaining 5.8
Project 142.2 283.1 (49.7)%

During FY2016, we will continue to increase capacity utilisation at Jharsuguda and bring new capacity onstream at Korba and Talwandi Sabo.

  • Enhance access to power transmission facilities.
  • Complete the 1,980MW Talwandi Sabo power project

The Vizag General Cargo Berth (VGCB) tonnage handled increased by 48% to 7mt as compared to 4.7mt in FY2014 and generated an EBITDA of US$13.0 million.

VGCB is one of the deepest coal terminals on the eastern coast of India, which enables docking of large Capesize vessels.

Turbine at 2,400MW Jharsuguda Power Plant.