Orient Green's Q3 loss narrows to Rs 70 cr

Year-ago loss was Rs 102 cr; firm to use proceeds from sale of unviable units to pare debt

Renewable energy-based power generation company Orient Green Power company's consolidated loss narrowed to Rs 69.52 crore in third quarter ended December 31, 2016.

Its consolidated net loss was Rs 102.48 crore in the quarter ended on December 31, 2015, Orient Green Power said in a BSE filing yesterday.

According to statement, its total income from operations increased to Rs 73.11 crore in the third quarter compared to Rs 52.80 crore in the year-ago period.

In a statement issued today, the company's MD S Venkatachalam said, "Going by the first nine months of the fiscal, we are on course to report our best-ever annual performance. This has come about through strategic initiatives undertaken by the team supported by improved operating environment for renewable energy. Our improved financial position through flexible structuring of term loans has also positively impacted cash flow."

"We have executed the share purchase agreement on the sale of 20 Mw biomass power plant in Kolhapur for a consideration of Rs 81 crore. The sale proceeds from unviable units will be deployed towards debt reduction as well as towards working capital requirements to improve the performance of the profit generating units," Venkatachalam said.

"The improving operating environment - lower grid back down, sharp improvement in volumes of RECs traded on the exchange coupled with our strategic initiatives should help us sustain the momentum in performance. The addition of 43.5 Mw of turbines in AP will add further impetus to growth," Venkatachalam added.

Venkatachalam further informed, "The demerger of our wind and biomass business is progressing well. Our board has also approved entering into an exclusive discussion with IL&FS Wind to evaluate a merger of the wind business of both entities. This transaction has the potential to create a market defining wind power generation company with combined capacity in excess of 1.2 Gw and a truly pan-India presence.