OPG, the developer and operator of power plants in India, saw profits before tax double in the year to 31 March 2011.The firm recorded profits before tax of £11.16m - an increase of 105% on the previous year.Revenues also sky-rocketed, up 188% to £33.15m, driven partly by the opening of its coal-fired plant Chennai 1, which is operated and managed by the Tata Power Company. M.C.Gupta, chairman of OPG, said the firm continued to benefit from a shortage of reliable power supplies in India. "With the planned additional supply likely to fall acutely short of the 300-315 GW required in the next five years, we believe this dynamic will prevail and prices will remain firm," he said.Adam Forsyth at Matrix Group said the full-year results were a little behind expectations but did not justify the 40% fall in the comapny's shares since the peak in late January."We think there is nothing here to justify the sell-off in the shares and wethink is largely technical with buyer appetite sated by [a] placing in February," he said. "If the company can make visible progress on its development pipeline there is scope for a substantial rebound," he said.
Last checked at 