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Mytrah Energy (LSE:MYT), a Hyderabad-based wind energy company recently announced that it expects to make profit before tax that will be running to almost $10 – $12 million on a projected revenue of $28 – $30 million in the first half of the current financial year, which is also the company’s first operational period.
The company which was founded and listed on the London Stock Exchange in October 2010, and has a capacity of 316 MW in seven sites, has recently unveiled plans to extend this capacity to about 600MW, which will cost it more than 350 million dollars over the next two years. With this the company hopes to achieve a return of up to 16% on equity over a period of 25 plant life years.
Ravi Kailas, the CEO of the company recently explained the reason behind the early break even, by emphasizing that the support of long term funds enjoyed by the company and the lower capital costs besides internal execution capabilities are what separates the company from other player in the industry.
With not more than an active year on the London Stock Exchange, many analysts have predicted that Mytrah Energy Limited will outperform in the market even beyond this year’s results. And many more are recommending a buy at 57.00 in the market.
Investors in this company have been able to witness a steady rise in their portfolios; but unlike many other increases in price, many investors are willing to keep the shares of this company, with the hope that the expansion and profitability will continue over the course of time.
Indications from the industry also support this line of thinking, as reports suggest that higher energy output at 39percent PLF, in view of good wind season, will boost revenue for the first half of the year, while the full year will stagger around 29%.
Analysts have pointed out that the investment activities of the company will increase as much as two-fold within the next five years. For instance, the company aims to invest about 500 million dollars, of which more than 150 million has already been raised by the company in form of equity finance.
The Indian wind power developer, Mytrah Energy,has rapidly developed over the past year, from virtually a standing start, into the second-biggest independent wind power producer in the sub-continent; and its accelerated development strategy should see it become the market leader by 2013.
There is definitely something worthwhile to cheer about for the investors, and one thing is certain, the market has definitely not heard the last of this new startup – giant.
He turned down 4.7 million per year. I guess the ville is going to make him a top 5 paid coach.