Unaudited results for the six months ended 30 September 2020

OPG (AIM: OPG), the developer and operator of power generation plants in India, announces its unaudited results for the six months ended 30 September 2020 (“H1 FY21”).

Highlights

• Profit before tax from continuing operations increased by 32.0 per cent to £12.8m (H1 FY20: £9.7m)
• Operating profit includes income of £9.6m with respect to historical contractual claims
• Diluted EPS increased by 48.2 per cent to 2.92p (H1 FY20: 1.97p)
• In June 2020, approx. £21.1 million (Rs.2 billion) were raised through non-convertible debentures (NCDs) issue with a three years term and coupon rate of 9.85%; the NCD’s proceeds were used to prepay the FY21 and FY22 (i.e. up to March 2022) principal term loans obligations
• £8.2m term loan principal repayment (excluding repayment of term loan from NCDs) in H1 FY21, representing 2.04 pence per share accretion in value to shareholders’ equity
• Net debt, including NCDs, reduced by 44.6 per cent to £34.9m (£63.0m at 30 September 2019, £53.4m at 31 March 2020)
• H1 FY21 total generation of 0.8 billion units (H1 FY20: 1.4 billion units)
• Average tariff in H1 FY21 was Rs5.60 (H1 FY20: Rs5.66), tariff reduction is primarily due to covid-19 discount extended to the captive consumers

Arvind Gupta, Chairman, commented:

“I am proud to say that OPG is coming out from the COVID-19 pandemic as a stronger and more resilient Company. OPG delivered very strong cash generation during the reporting period, and OPG has continued deleveraging as part of its ongoing strategy. COVID-19 and the lockdown had a severe impact on overall industrial activities in India. However, the power demand has gradually increased during the first half of FY21 with OPG remaining profitable, cash generative and has met all its debt obligations.”

Results in full