Vedanta's power sales up 16% on commissioning of new units

Net power realisation, at Rs 2.77 a unit, was marginally lower due to weaker power demand

The commissioning of additional power units at its constituents -- Talwandi Sabo Power Ltd (TSPL) in Punjab and Balco (Chhattisgarh) -- helped Vedanta Ltd to post 16 per cent growth in its power sales in the December quarter.

In Q3, Vedanta sold 3,413 million units (MU) compared to 2,934 MU in the comparable period of last fiscal.

Power sales from TSPL increased with all three units being operational. In Q3 of FY 17, the three units operated at an availability of 77 per cent. The power purchase agreement with the Punjab State Power Corporation Ltd (PSPCL) compensated Vedanta based on the availability of the plant.

The 600-Mw Jharsuguda power plant operated at a plant load factor (PLF) of 72 per cent in Q3 of FY 17 compared to a PLF of 66 per cent in Q3.

The 600 Mw units (2x300Mw) of Balco IPP operated at a PLF of 55 per cent in Q3 of FY 17 due to a weaker power market. PLF at the Malco power plant was at 15 per cent, lower due to lower off-take by the Telangana State Electricity Board (TSEB). However, as per the contract entered into with TSEB, we are entitled to compensation at 20 per cent of the contracted rate for off-take below 85 per cent of the contractual quantity, Vedanta said in its latest production statement.

Average power realisation for the December quarter (excluding TSPL) was Rs 2.77 per unit, lower than Rs 2.88 per unit in the corresponding quarter of the previous fiscal. The net realisation was lower due to weaker power demand in the country resulting in lower price for power offtake. Average cost of power in Q3 was Rs 2.10 per unit compared to Rs 2.21 per unit in the same period of FY16.

For Vedanta, both revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) were higher during the December quarter, mainly driven by the commissioning of additional units.

Revenue for the quarter was $227 million, 30 per cent higher year-on-year (y-o-y) and EBITDA was $67 million, 48 per cent higher y-o-y.