| Essar Power reported
a total income of Rs.735 crore for the year 2004
- 05 as compared to Rs.549 crore in the previous
year, an increase of 34%. Profit before Interest,
Depreciation and tax stood at Rs.414 crore, an increase
of 15% over Rs. 360 crore achieved last year. After
providing for interest cost of Rs.175 crore , depreciation
of Rs.117 crore and corporate tax of Rs. 3 crore,
net profit stood at Rs.119 crore as against Rs.60
crore last year, a rise of 97%.
The Company's operations saw some significant
positive changes as a result of its thrust on
cost reduction and operational efficiencies. Successful
transition from high cost Naphta to Natural Gas
from April 2004 under long-term supply agreements
ensured significant cost reduction and guaranteed
supply of gas. Plant Load Factor went up to 93%
from 86% last year, which was the highest ever
since the company commenced operations.
During the year, the Company refinanced long-term
debts aggregating to Rs.1019 crore to refinance
its high cost loans and thus brought down its
cost of debt to 8.66%.
Mr. A K Srivastava, Managing Director, Essar
Power said " We have consolidated our operations
and are well positioned to be an important player
in India's power sector. We are expanding capacities
and are looking at entering the areas of distribution
and as we go forward."
Essar Power has finalized plans to augment its
generating capacity from 515 MW to 2000 MW at
an investment of Rs.4000 crore, which works out
to approximately Rs.2.7 crore per MW.
Essar Power is India's first independent power
producer in the private sector and enjoys the
lowest manpower-to-megawatt ratio.
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CORPORATE