Reliance Power gains after good Q1 figures

Reliance Power rose 1.36% at Rs 93.50 at 13:45 IST on BSE after the consolidated net profit rose 22% to Rs 240 crore on 110% surge in operating revenues to Rs 1136 crore in Q1 June 2012 over Q1 June 2011. The result was announced during trading hours today, 14 August 2012. Meanwhile, the BSE Sensex was up 81.51 points, or 0.46%, to 17,714.96. On BSE, 10.15 lakh shares were traded in the counter as against an average daily volume of 13.17 lakh shares in the past one quarter. The stock hit a high of Rs 94 and a low of Rs 91.30 so far during the day. The stock had hit a 52-week high of Rs 139.40 on 6 March 2012. The stock had hit a record low of Rs 68.50 on 21 December 2011. The stock had underperformed the market over the past one month until 13 August 2012, sliding 12.52% compared with the Sensex's 2.44% rise. The scrip had also underperformed the market in past one quarter, falling 0.38% as against 8.23% rise in the Sensex. The large-cap company has an equity capital of Rs 2805.13 crore. Face value per share is Rs 10. Reliance Power's total income spurted 82% to Rs 1252 crore in Q1 June 2012 over Q1 June 2011. Other income declined 21% to Rs 116 crore during the period under review. EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) from generating assets increased 75% to Rs 365 crore in Q1 June 2012 over Q1 June 2011. Power production at 1200 megawatts (MW) Rosa plant in Uttar Pradesh jumped 73% to 2055 million units in Q1 June 2012 over Q1 June 2011. The 40 MW solar photovoltaic plant in Rajasthan, India's largest solar project, was operational in record time of 129 days. The company said in a statement that major construction milestones continue to be achieved for the 3960 MW Sasan ultra mega power projects (UMPP). Turbine box-up has commenced for the first 660 MW unit for the plant in Madhya Pradesh, which is expected to be commissioned ahead of schedule. The company added that the State Council of Government of China has approved loans of $1.1 billion (Rs 6200 crore) from Bank of China, China Development Bank and the Export Import Bank of China for the Sasan project. This would be the largest financing by Chinese banks to an Indian project across sectors. The Sasan project has also secured of $800 (Rs 4500 crore) million from US-Exim Bank and Standard Chartered Bank. Announcing the results, J P Chalasani, the Chief Executive Officer of Reliance Power, said, "Our performance in the first quarter of the financial year ending 2013 (FY13) has been highly satisfactory both in terms of revenue as well as profit growth. The 1200 MW Rosa plant in Uttar Pradesh has been operating at a high operational efficiency and the plant generated over 2 billion units of electricity this quarter. I am happy that the 40 MW solar photovoltiac plant that we have built in Rajasthan has contributed to the bottom line in the first quarter. Work at the Sasan UMPP in Madhya Pradesh and the associated coal mines is in full swing. Coal production is set to begin before the commissioning of the first unit of the Sasan UMPP." Reliance Power, a part of Reliance group, is India's leading private sector power generation company. The company has the largest portfolio of power projects in the private sector based on coal, gas, hydro and renewable energy, with an operating portfolio of 1,540 MW. The company also has the largest captive coal reserves in the private sector, estimated at more than two billion tonne. Besides, the company has purchased three coal mines in Indonesia an also has plans to develop coal bed methane based generation capacity.