The weak rupee and a calm start to the Indian windy season hit half-year pre-tax profit at turbine owner Mytrah (MYT). But more blustery conditions since the period-end have given management confidence in its previous guidance. Broker Investec Securities said its $19m (£11.7m) pre-tax profit forecast for the full year was "still achievable", giving EPS of 10.2¢ - up from $11m and 4.2¢ last year.
By passing the 500 megawatt (MW) milestone, the Indian power generator has now crossed what its founder Ravi Kailas described as a "psychological barrier". At 525MW (including 28MW added since the period-end), capacity is up 70 per cent since June 30 2013, when the group could produce 309MW. What's more, the new Modi government wants to double the capacity of wind projects to alleviate India's chronic power shortage. Mytrah has responded by ordering a further 200MW of turbine capacity.
Mr Kailas says Mytrah's assets were installed with one of the lowest capital costs in the industry, yet the company has still racked up total borrowings of $416m (£255m), including $53m due to be repaid by next June. The interim statement points to $20m in undrawn long-term facilities and $16.5m in cash and cash equivalents, as well as cash generation of $12.6m during the half. Mr Kailas also stresses relationships with 22 banks.
| MYTRAH ENERGY (MYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 86p | MARKET VALUE: | £141m | |
| TOUCH: | 84-87p | 12-MONTH HIGH: | 100p | LOW: 65p |
| DIVIDEND YIELD: | nil | PE RATIO: | 25 | |
| NET ASSET VALUE: | 50¢ | NET DEBT: | 293% | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 | 27.4 | 4.7 | 2.36 | nil |
| 2014 | 29.4 | 3.3 | 1.65 | nil |
| % change | +7 | -30 | -30 | - |
Ex-div: na Payment: na | ||||
