Mytrah Energy shares drop as profit guidance disappoints

12th Dec 2014 08:09

The share price of Mytrah Energy took a dive on Friday after the India-based power producer guided to profits much lower than the market was expecting.The company said that underlying earnings before interest, tax, depreciation and amortisation (EBITDA) should be "close to $65m" in 2014. This would represent 38% growth from the $47m of operating profits recorded in 2013.However, in a research report back in September, analysts at Investec had pencilled in a figure closer to $91m for this year.Nevertheless, the tone of Mytrah's update was upbeat, with chairman and chief executive Ravi Kailas saying that the company has created a "substantial business in only four years" after its listing on the stock market."The highly visible contracted cash flow generated by our new wind farms has begun to impact our results this year, and we expect them to deliver a full year of performance in 2015," he said.Mytrah also said that its recently-issued 3.98bn-rupee corporate bond began trading on the Bombay Stock Exchange on 1 December, part of its $70m financing package. This will be used mainly to refinance an existing mezzanine facility.The stock was down 9% at 73.25p by 08:08.