OPG Power Ventures posts marginal decline in revenue

OPG Power Ventures, the developer and operator of power generation plants in India, saw revenue slip in the six months ended September 30th 2012.

OPG Power Ventures, the developer and operator of power generation plants in India, saw revenue slip in the six months ended September 30th 2012.

Revenue fell 5.3% to £17.8m from £18.8m year-on-year excluding legacy assets no longer consolidated from November 2011.

The group pointed out that the 17% depreciation in the average Indian rupee/pound sterling exchange rate since the comparable period of the previous year masked an underlying increase in rupee revenues of 11%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 7.6% to £4.65m while the EBITDA margin stood at 26%, 1% less than the previous year's margin.

Cash and cash equivalents of £22.5m were reported as well as 31% of gearing following project expenditure.

Commenting on the results, Mr M C Gupta, Chairman of OPG Ppwer Ventures said: "The group's flexible business model continues to produce superior returns and OPG's roll out of new plants is on schedule.

"Once again management have been able to demonstrate the effectiveness of the business model by successfully adapting to changing circumstances in the industry such as rising input prices and changes in tariff structures.

"The growing power demand in India combined with our roll out and in particular measures now being instituted to improve the financial health of the state utilities makes us confident that OPG will continue to build superior shareholder value."

The group's share price was down 1.92% to 51p at 11:48 on Thursday morning.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020