Other income lifts REL profit 22%

BS 200 scorecard

Buoyed by other income, Reliance Energy reported a net profit of Rs 201 crore, up 22 per cent over Rs 164 crore recorded in the corresponding quarter last year.

Net sales went up 55 per cent to Rs 1,533 crore from Rs 988 crore in the previous year's corresponding quarter. The company reported a 12 per cent growth in operating profit to Rs 369.4 crore from Rs 328.6 crore during the period under review.

Other income, however, went up by 92 per cent from Rs 149.2 crore to Rs 286.7 crore. Profit, excluding other income, was down 54 per cent at Rs 82.7 crore from Rs 179.4 crore. The company has a cash reserve of Rs 7,000 crore. 
 

Rs crore	Quarter ended Dec		% chg
	2005	2006
Net sales	988.35	1533.69	55.18
Other income	149.28	286.74	92.08
Total income	1137.63	1820.43	60.02
Expenditure	809.01	1451.01	79.36
Operating profit	328.62	369.42	12.42
Net profit	164.64	201.03	22.10
EPS (Rs)	8.16	9.43	15.56

The company has been focusing on engineering and construction contracts such as the Rs 2356 crore Mumbai Metro rail contract, the work on which started in June last year.

Income from contracts rose more than three times to Rs 612 crore compared with Rs 173 crore a year ago.

During the quarter, the company purchased the balance equity shares of BSES Kerala Power (BKPL). BKPL has now become a wholly owned subsidiary of REL.

The company also acquired 100 per cent stake in Reliance Infrastructure Projects and Reliance Infrastructure Services and 51 per cent take in Reliance Energy Transmission.

Consequently, these companies have also become subsidiaries of the company, REL informed the stock exchanges in a release.