Indian windpower group Mytrah Energy PLC (LON:MYT) is installing generating facilities at a rapid rate.
From 1,180Mw in June, capacity is scheduled to rise1,743Mw by the middle of the year as the roll-out of new capacity carries on apace.
Mytrah's operations are spread over 30 locations and now include a first solar plant as well.
Revenues rise as capacity comes onstream
Reflecting this, first half revenues to June rose by 53% even with a transformer failure at a Government substation in Rajasthan that knocked revenue by 6%.
The start of solar operations was also a significant milestone for the company, said executive chairman Ravi Kailas, while the Indian government's adoption of auctions as the principal source of new capacity was an exciting development.
Mytrah won 250 MW wind power project through the first competitive bid in the sector and 57Mw in a rooftop solar auction.
Interim revenue rose to US$229mln, while underlying profits were [EBITDA] US$82.3mln, up 85% or 45% on a directly comparable basis
In September, Mytrah refinanced US$277mln of its US$1.1bn debt through an issue of non-convertible debentures to Piramal Group.
This was used to re-finance the last part of its early-stage mezzanine funding.
Share price rally
The share price rally follows on from a review into some of the company’s boardroom practices after the revelation that Kailas borrowed US$2.55mln from the company without getting it authorised.
The company bought in an outside legal firm last to carry out a review even though the money was repaid almost immediately.
Certain weaknesses in the company’s payment processes were identified, Mytrah said, which added it would act on all of the review’s recommendations.
These included improvements and better documentation of its payment processes, while the responsibilities of board members and senior management will be more clearly defined.
“The company is also considering adding the CEO and CFO to the board in light of the review.”
At 31.9p, Mytrah is valued at £47mln.
Lon=okin glonger term, Mytrah believes it is “ideally placed” in “fast growing and rapidly developing” India, which has a population of 1.2bn people.
“India is expected to grow at over 7% per year, according to the IMF, and there is clear evidence that electricity consumption is correlated to GDP growth,” Mytrah said.
“Both wind and solar power are faster to market and cost-competitive with alternative sources of power, which in India is primarily coal.”