December 05, 2016 / 14:15 IST
Q2FY17 adjusted PAT at Rs 5.2 bn grew 10% YoY. Improvement in results was driven by Mundra (PLF of 82% vs. 62% in Q1 due to low plant availability), steady performance for Delhi distribution (EBITDA of Rs 2.5 bn adjusted for one-off MAT credit of Rs 3.8 bn) and improvement in profitability of Indonesian coal mine due to cost rationalization (EBITDA up 57% QoQ).
Welspun’s 1.14 GW asset acquisition completed in Q2 for EV of Rs 92.5 bn. As a result, leverage increased to 2.7x, which is higher than normal project funding level of 70:30. We believe Mundra tariff hike is critical, else the company may require external funding. We have not yet modeled Welspun assets and await more track record of operations (only 15 days operational data available).
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