India's Orient Green says EBIT ballooned 228% y/y in fiscal Q1

Indian firm Orient Green Power Co Ltd (BOM:533263) reported a 228% on the year increase to INR 416 million (USD 6.2m/EUR 5.6m) in April-June 2016 earnings before interest and tax (EBIT).

This is the first quarter of Orient Green's fiscal 2016/17 year.

“The improved performance is mainly due to a far better grid availability in Tamil Nadu where a significant proportion of our assets are located,” managing director, S Venkatachalam, said. The combination of high wind availability and improved power evacuation ultimately led to a substantial increase in power generation. Stable tariffs hepled, too.

As of June 30, Orient Green owned and operated 425 MW of wind parks and 106 MW of biomass assets.

Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to INR 840 million during the quarter, marking a 50% improvement in annual terms. The power plant operator’s revenues jumped by 17% to INR 1.26 billion.

Details per segment are available in the table below:

The firm said it is on track to soon complete its demerger process. Afterwards, it plans to divest and monetise some of its biomass units in order to secure the necessary working capital for the profitable operation of its remaining facilities.

(INR 10 = USD 0.149/EUR 0.135)

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