Reliance Energy net up 22% in JQ

Reliance Energy (REL) posted a 21.59 per cent rise in net profit for the quarter ended June 30, 2004 to Rs 102.87 crore against Rs 84.60 crore for the corresponding period of the previous year.

Net sales rose by 22.71 per cent to Rs 799.20 crore for the quarter ended June 30, 2004, against Rs 651.27 crore for the corresponding period of the previous year.

Total income increased by 26.82 per cent to Rs 1,019.70 crore from Rs 804.04 crore. The board today approved the payment of a quarterly dividend at Rs 1.10 a share, amounting to a total payout of Rs 23 crore.

Reliance Energy said in a media release that its net profit would have been even higher at Rs 160 crore but for higher expenses of Rs 57 crore. These expenses were on account of increased liability of standby charges (Rs 12 crore), Rs 25 crore on increased staff costs following the signing of wage revision agreements and provision of Rs 20 crore towards irrecoverable dues from consumers.

Reliance Energy's interest and finance charges rose by 195.65 per cent to Rs 30.63 crore for the quarter ended June 30, 2004, against Rs 10.36 crore for the corresponding period of the previous year.

The company's aggregate sales of electricity increased by 12 per cent to 2,180 million units for the quarter ended June 30, 2004, against 1,945 million units in the corresponding period of the previous year.

Seeks cash refund from TPC: REL has filed a special leave petition (SLP) in the Supreme Court against the order of the High Court which directed Tata Power Company (TPC) to provide a bank guarantee to REL, pending a final decision on the standby charges case. REL in the SLP, which is expected to come up for hearing shortly, has sought a cash refund instead of a bank guarantee.

The Maharashtra Electricity Regulatory Commission had directed TPC to refund about Rs 32.20 crore to REL in respect of excess payments already made towards standby charges as per various interim orders.

Subsequently, TPC filed a writ petition in the High Court against the above order of MERC. The High court, vide its interim order dated July 5, 2004, directed TPC to provide a bank guarantee to REL for Rs 31.39 crore, pending disposal of TPC's appeal.