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Mytrah announces profits in first operational period-aims to double capacity to 600 MW in next couple of years

According to reports, Hyderabad-based Wind energy company Mytrah Energy Limited today said it expects to make a profit before tax (PBT) of $ 10-12 million on a projected revenue of $ 28-30 million  in the first half of the current financial year , its first operational period, in contrast to a perception that clean energy forays take longer gestation to break even.

Founded in October, 2010, the London Stock Exchange listed company has a 316 mw operational capacity. located in seven sites, which it takes to 600 mw by investing Rs 2,000 crore in the next couple of years. The company expects to achieve a 16% return on equity over a period of 25 years of plant life where the wind farm output is typically based on a 25-26% plant load factor(PLF).

Explaining the reason behind early break even achieved in wind energy business Ravi Kailas, chairman and CEO of Mytrah Energy said the support of long term funds, lower capital costs besides internal execution capabilities had become a differentiator from other players in the sector. The company has so far invested about Rs 2,400 crore. However, the future expansion would become much easier and quicker if states like Andhra Pradesh move the tariff from the present Rs 3.50 to Rs 4.50 per unit, according to him.

The revenue accruals for the first half of the year also helped by higher energy output at 39% PLF due to good wind season but for the full year it could be around 26%, Ravi said.

About 270 MW of capacity is currently under development for which the company has been pumping in around Rs 2000 crore investment. Of this about   Rs 700 crore of equity finance has already been raised by the company and currently in talks with various banks to raise the debt, according to Vikram Kailas, managing director of Mytrah Energy said.

“We expect to  make a PBT of Rs 700 crore once we achieve 600 mw capacity. This cash flow would help in further expansion that we have proposed to undertake,” Vikram said. The company proposes to establish 5000 mw of installed capacity in wind energy with a total capex of Rs 30,000 crore by 2017-18.

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