India's Orient Green boosts EBITDA by 37% in FY 2016/17

Indian renewable power generator Orient Green Power Co Ltd (BOM:533263), or OGPL, last week said it has achieved its best ever EBITDA of INR 2.93 billion (USD 44m/EUR 40m) in the financial year to the end of March 2017.

EBITDA (earnings before interest, tax, depreciation, and amortisation) was up 37% year-over-year, aided by efforts to improve operating efficiencies. EBIT was also at an all-time high, jumping to INR 1.25 billion from INR 76 million.

Revenues rose 13% to INR 4.61 billion as power generation increased by 25%. Managing director S. Venkatachalam said the revenues increase reflects improved traction in both the wind power and biomass power businesses. The company also increased its sales of Renewable Energy Certificates (RECs) by 33%, reducing its inventory.

"The outlook for a normal monsoon combined with sharply improved grid availability bodes well for the wind business," Venkatachalam said. He added the company has secured a large part of the annual feedstock needs for four plants in the biomass business and is well placed to sustain the momentum in performance.

OGPL has extended the exclusivity period to evaluate the merger of its wind business with that of IL&FS Wind, which would create a wind power generator with a combined capacity of 1.2 GW. The exclusivity agreement was signed in January and extended in April.

(INR 100 = 1.501/EUR 1.373)

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