Indian wind power developer Mytrah Energy (MYT) has developed rapidly over the past year from virtually a standing start into the second-biggest independent wind power producer in the subcontinent, and its accelerated development strategy should see it become the market leader during 2013.
At the end of September, the company had 316 megawatts (MW) of operational wind power spread across seven sites in four different states in India, having added 130MW since the financial year-end in March. It also expects another 24MW to come on stream during the final quarter and a further 270MW in the first six months of 2013, bringing total capacity to 600MW by June. The existing projects have secured long-term power-purchase agreements, which means they will generate steady and predictable revenue flows in the coming years. Thus far, all projects are performing better than forecast.
Mytrah has been able to build out its portfolio so quickly thanks to partnerships with major wind turbine manufacturers Suzlon, with whom it has an agreement to build 1 gigawatts of wind farms on a turnkey basis on fixed terms, and Gamesa. The current pricing regime in India and issues with fuel procurement for conventional power projects mean wind power is almost at so-called grid parity, which has aided Mytrah in finding competitive funding streams for its projects.
MYTRAH ENERGY (MYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 57p | MARKET VALUE: | £93.3m | |
| TOUCH: | 56-59p | 12-MONTH HIGH: | 126p | LOW: 45p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 34¢ | NET DEBT: | 134% | |
| Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2011 | nil | -1.20 | 0.96 | nil |
| 2012 | 6.97 | -4.20 | -1.73 | nil |
| % change | - | - | - | - |
Ex-div: na Payment: na | ||||
