In a little over three years, Indian renewable energy developer Mytrah (MYT) has built up 460 megawatts (MW) of generating capacity across 10 wind farms. Ambitious management want to triple that by 2016 and eventually hit 5,000MW.
Mytrah says market drivers are favourable given India’s chronic power shortage and advantageous tariffs for electricity produced by wind farms. Wind power is fairly well established in India with 20 gigawatt (GW) up and running at present, representing 10 per cent of India’s total installed power capacity.
A 30 per cent expansion of Mytrah’s average operational capacity last year to 307MW helped drive adjusted cash profits up 72 per cent to $46.5m. That is, however, flattered by a comparison against just nine months in 2012 following a change of year-end. And both pre-tax profit and earnings per share fell sharply as finance costs almost doubled. Broker Investec Securities expects EPS of 17.2¢ this year (2013: 4.2¢).
With both revenue and costs denominated in Indian rupees, the depreciation of the local currency has only a translational impact on results presented in US dollars. In fact, Mytrah says the weaker rupee is beneficial as it causes power prices to increase as coal-generating rivals are forced to pay more to import coal.
| MYTRAH ENERGY (MYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 88p | MARKET VALUE: | £144m | |
| TOUCH: | 89-91p | 12-MONTH HIGH: | 116p | LOW: 64p |
| DIVIDEND YIELD: | nil | PE RATIO: | 35 | |
| NET ASSET VALUE: | 40¢ | NET DEBT: | 295% | |
| Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | nil | -1.2 | -1.0 | nil |
| Year to 31 Dec | ||||
| 2012* | 30.9 | 13.2 | 7.3 | nil |
| 2013 | 50.9 | 8.4 | 4.2 | nil |
| % change | +65 | -36 | -42 | - |
*Nine-month period to 31 Dec 2012 £1=$1.66 | ||||
