OPG Power Ventures delivers solid FY cash generation, significantly reduces net debt

Indian power plant operator OPG Power Ventures said on Tuesday that it had delivered "very strong cash generation" and achieved "a significant reduction in debt" during the year ended 31 March despite disruptions caused by the Covid-19 pandemic.

OPG generated a total of 2.11bn units in the year, down from 2.72bn units a year earlier due to coronavirus-related nationwide lockdowns in India, while average tariffs for the year also fell, slipping to Rs 5.52 (0.54p) from Rs 5.67 (0.55p).

Full-year plant load factor was 58%, compared with 75% a year earlier, but recovered to 75% for the final month of the trading year and topped 85% in April.

In terms of recent trading, OPG added that an additional wave of Covid-19 cases surging across India had led state governments to impose various restrictions to bring the situation under control. However, the AIM-listed firm noted that it had cause to expect a more "muted economic impact" compared to the first wave due to lockdowns being implemented more narrowly.

Chairman Arvind Gupta said: "We expect to meet the market expectations for our FY21 profit after tax and cash generation.

"We continue to work tirelessly to implement plans to limit the business disruption to OPG and the associated human, financial and commercial consequences of the second wave of Covid-19."

As of 0935 BST, OPG shares were up 0.56% at 14.28p.