REL net profit up 34 per cent

Reliance Energy Limited, the power generation company of the Anil Ambani group, has posted a 34 per cent increase in net profit to Rs 250.08 crore for the second quarter ended September 30, 2007, on increased power sales and other income.

The company had recorded a net profit of Rs 186.39 crore in the second quarter last year.

REL's income was up 13.65 per cent to Rs 1,799.92 crore for the quarter, from Rs 1,583.70 crore in the corresponding quarter last year. 
 

(Rs crore)	Quarter ended Sep
	2006	2007
Net sales	1,408	1,542
Other income	176	258
Expenditure	1,230	1,360
Operating profit	354	439
Net profit	186	250
OPM (%)	25.12	28.51
NPM (%)	13.24	16.22

For the half year ended September 30, 2007, net profit increased 30 per cent to Rs 472 crore, while income was up 28 per cent to Rs 3,712 crore.

REL registered a cash profit of Rs 619 crore, against Rs 484 crore in the corresponding period last year, an increase of 28 per cent.

While annualised cash earnings per share (Cash EPS) stood at Rs 54.2, annualised earnings per share (EPS) was at Rs 41.3 for the half year period.

"Other than electrical energy sales, extraordinary elements like other income from operations helped the performance, which was along the expected lines," said a power sector analyst, who requested anonymity.

"While power generation grew by 9 per cent, sales grew by only 7 per cent and power purchase expenses increased by 13 per cent, business from EPC and other contracts was also lower, which means the company could have done better."

The turnover of engineering, procurement and construction (EPC) and the contracts division was Rs 621 crore, against Rs 740 crore in the corresponding period last year. Other income for the first half year, mainly representing interest income, grew by 57 per cent to Rs 547 crore.

REL's energy sales grew by 40 per cent to Rs 2,543 crore for the half year, against Rs 1,823 crore in the corresponding previous period. It sold 4,860 million units of electrical energy for the period, 10 per cent more than the 4,416 million units sold in the corresponding previous period.

The consumer base in the Mumbai supply area increased by about 0.2 lakh to 26 lakh consumers during the first half of the year, according to the company.

Commenting on the power generation performance, the company said its Dahanu Thermal Power Station operated at a plant load factor (PLF) of 99.1 per cent for the first half year, similar to the first half in the previous year.

The Samalkot Power Plant operated at a higher PLF of 66.2 per cent, against a PLF of 48.9 per cent in the corresponding period last year.

This was mainly due to mixed fuel operation and increased gas supply to meet the growing grid demand. The Goa Power Station maintained a lower PLF of 79.3 per cent (against 88.9 per cent) during the period under review.