-- adds broker comment, share price--
India-based utility OPG Power (LON:OPG) lifted annual profits by more than a fifth, with this year set to be boosted further by two huge new electricity plants at Chennai and Gujarat.
The new plants made no contribution in the year to March, where revenues rose slightly to £100mln with profits 21% higher at £21.7mln.
The average tariff OPG received rose by 2.9%, though there was an offset from increase in coal costs both from India and from abroad.
A new 300Mw plant at Gujarat came on stream in April, with the fourth plant at Chennai, to add a further 180Mw, to become operational this month.
MC Gupta, chairman, said: "The team at OPG have achieved much over the last five years and have delivered compound earnings growth of over 40% per annum over the last three years.
“OPG is now set to achieve a new dimension as we start to generate cash flows from a significantly expanded, multi-locational asset base.“
Cenkos adds that a net power deficit across India means the macro environment remains favourable and OPG is in a strong position to deliver further growth.
The broker predicts revenues will jump 93% in the current year to £193mln, while underlying earnings will jump to £74mln from £33.4mln.
"A proven business model with significant expansion opportunities in a favourable macro environment makes for a compelling investment case", adds the broker.
Shares slightly eased to 98.3p.