With the Indian government targeting 170 gigawatts (GW) of wind and solar generation by 2022, it's understandable why wind power provider Mytrah Energy (MYT) ploughed ahead with capacity expansion during the first half. The group now has 400 megawatts (MW) in assets under construction, half of which are now expected to be operational and generating revenue ahead of the windy season in 2016. But this expansion has come at a high price. The India-based group increased net debt by a fifth from the 2014 half year, while finance costs were up 48 per cent to £25.6m. The increased debt burden effectively tipped Mytrah into negative earnings for the period.
Mytrah has also made its first foray into solar power, bidding into several state capacity auctions, including a recent bid for 350MW of power generation in Telangana state in southern India. Chief executive Bob Smith says management understands the group has won a substantial proportion of this capacity and has received a "vague indication" from the state government that this will be confirmed during the fourth quarter of the year - time will tell.
MYTRAH ENERGY (MYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 77p | MARKET VALUE: | £125m | |
| TOUCH: | 75-78p | 12-MONTH HIGH: | 90p | LOW: 62p |
| DIVIDEND YIELD: | nil | PE RATIO: | 112 | |
| NET ASSET VALUE: | 45p | NET DEBT: | $519m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2014 | 29.4 | 3.3 | 0.02 | nil |
| 2015 | 32.6 | -3.0 | -0.01 | nil |
| % change | +11 | - | - | - |
£1=$1.56 | ||||
