Reliance Power has registered 24% growth at consolidated net-profit level for the quarter ended March 2012 at Rs 231.31 crore as revenue for the same period was higher by 7% to Rs 532.59 crore.

Topline growth was backed by good operating performance where the operating profit grew by 16% to Rs 178.85 crore on the back of 240bps expansion in operating margin to 33.6%. The relatively better growth at bottomline was largely on account of lower increase in interest costs, decline in depreciation charges as well as increase in Tax credit.

FY12 sales grew a sharp 91% to Rs 2019.21 crore. The topline growth was followed by smart operating performance as OPM improved from 21.7% to 30.9% on the back of decline in employee costs which led to 172% growth in operating profits to Rs 623.89 crore. Net profits, however, grew just 14% to Rs 866.77 crore as there was not only decline in other income during the period but tax provisioning too shot up from Rs 11.45 crore to Rs 85.61 crore with tax rate being 9% against 1.5%.

Consolidated quarterly Results:

For the quarter ended March 2012, consolidated total income from Operations jumped by 7% to Rs 532.59 crore.

OPM jumped by 240bps to 33.6% on the back of decline in almost all major expense heads, particularly employee costs which fell 424bps to 0.98% of sales, 368bps decline in cost of operations to 3.25% of sales, 113bps decline in fuel costs to 51.77% of sales. Operating Profit grew 16% to Rs 178.85 crore. While the variable costs were in line with the operation growth, the fixed cost on common facilities remained same it seems, thus the expansion in revenue has resulted in margin expansion boosting operating profits. Other income grew by 17% to Rs 120.17 crore. Interest expenses increased by a muted 4% to Rs 74.24 crore but depreciation charges fell by 2% to Rs 31.29 crore. PBT was thus up by 25% to Rs 193.5 crore.

The tax credit for the quarter increased 17% to Rs 37.81 crore and thus the net profit eventually stood 24% higher at Rs 231.31 crore.

FY12 Performance:

For the Fiscal year ended March 2012, consolidated total income from Operations grew 91% to Rs 2019.21 crore.

OPM expanded by 920bps from 21.7% to 30.9% on the back of 434bps decline in employee costs to 2.95% of sales despite 283bps increase in fuel costs to 55.89% as all other expense heads too declined. The Operating Profit grew 172% from Rs 229 crore to Rs 623.89 crore. However, the other income declined by 13% to Rs 747.57 crore, Interest expense increased by 36% to Rs 297.62 crore and depreciation charges by 20% to Rs 121.45 crore. PBT was thus up by 23% to Rs 952.39 crore.

There was tax out go of Rs 85.61 crore, up by 648% from Rs 11.45 crore at effective tax rate of 9%, up 750bps. Net profit was up 14% to Rs 866.77 crore.

Other developments

Third 300mw unit of 1,200 MW Rosa commissioned three months ahead of schedule.

Total power generating capacity to reach 5,000 MW by Dec 2012.

• 600 MW Rosa Phase I operated at a PLF of 80.3% generating 4,233 million units (MUs) of power compared with 2,843 MUs in the previous year.

• Operating revenues from Phase I has almost doubled to Rs 1,931 crore from Rs 1,023 crore in the previous year.
• Net profit for Phase I at Rs 335 crore from Rs 131 crore in the previous year.
• 600 MW Rosa Phase II commissioned in March 2012, four months ahead of ahead of PPA schedule.
• 40 MW Solar PV project commissioned in March 2012 in a record time of just 129 days from start of construction. The project was fully financed by debt from US-Exim and ADB.

Capacities under Construction:

• Steam blowing has been completed for the first 300 MW unit of the 600 MW Butibori project in Maharashtra and the unit is expected to be synchronized in this quarter.

• Two of the gas turbines of India's largest gas-based project - the 2,400 MW Samalkot Power Project in Andhra Pradesh synchronized while two more gas turbines tested at Full Speed No Load (PSNL).

• A major milestone in the construction of the 3,960 MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh got accomplished with the successful completion of the boiler hydro test of the first 660 MW unit which is expected to be commissioned ahead of schedule by December 2012.

• Major large sized equipment - rope shovels, dumpers, etc, deployed at the Sasan coal mines. Over 38 lakh m³ of overburden already removed and coal production expected to commence in the next quarter.

Announcing the results, J.P. Chalasani, the Chief Executive Officer of Reliance Power, said:

We have successfully completed commissioning of the 1,200 MW Rosa plant in Uttar Pradesh four months ahead of PPA schedule again showcasing our strong project execution abilities. The 600 MW Rosa Phase I plant operated at an availability of over 86% for the year and generated net profit of Rs 335 crore. We have successfully commissioned India's largest Solar photovoltaic project, a 40 MW project in Rajasthan, in just 129 days and are well on track to become a 5,000.MW operating company by end of 2012.

The stock closed at around Rs 93.35 on 24^th May 2012 on BSE.

Reliance Power: Consolidated Result

Reliance Power: Consolidated Segment Results