PBT before forex gains down 13%
| Related Tables |
| 4 Reliance Energy: Result |
| 4 Reliance Energy: Segment Results |
Despite setback at top line the net profit surged up by 50% to Rs 301.60 crore thanks to revaluation of forex derivative instruments in accordance with changed accounting policy amounting Rs 60.02 crore and prior period tax write back of Rs 89.50 crore compared to nil and a charge of Rs 1.50 core in the corresponding previous period respectively.
Reliance Energy, a part of the Reliance - Anil Dhirubhai Ambani Group, is India's leading private sector utility company. The group distributes nearly 28 billion units of power consumers in Mumbai, Delhi, Orissa and Goa, across an area covering 124300 sq. kms. The company generates about 941 MW of power, through its power plants located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
Quarterly performance
Aggregate revenue for the quarter ended Dec'07 was down by 1% to Rs 1505.49 crore. Even the income from sale of electric energy was higher by 34% to Rs 1229.41 crore that from EPC contract was lower by 55% to Rs 276.08 crore thus resulting in marginal fall in aggregate revenue. In terms of unit sale the aggregate electric energy sold for the period was 2337 million units compared to 2221 million units translating into a growth of 5%. However higher external purchase of electricity at a higher cost have put pressure on margin of electricity business. Electrical energy sourced from external source during the quarter stayed higher by 9% to 1203 million units and with cost per unit being Rs 5.39/ unit (Rs 4.15 in corresponding previous period) the cost of energy purchased was higher by sharp 42% to Rs 648.17 crore. Reflecting this, the segment margin (PBIT margin) of electrical energy business of the company was lower by 20 basis points to 7.8% resulting in a segment profit of Rs 97.33 crore (up 23% yoy) on a segment sales (including other income) of Rs 1247.32 crore (up 26%). On comparison the segment margin of EPC business was higher by 610 basis points during the quarter resulting in a segment profit of Rs 25.37 crore (up 40%) despite its segment revenue erode by sharp 54% to Rs 280.51 crore.
Other income excluding the gain on revaluation of forex derivatives of Rs 60.02 crore was Rs 287.90 crore, a fall of 2%. As result the PBIDT was lower by 2% to Rs 362.03 crore. With interest cost higher by 55% to Rs 85.44 crore and depreciation cost lower by 7% to Rs 56.60 crore, the PBT before EO was lower by 13% to Rs 219.99 crore. With gain on revaluation of forex derivatives being Rs 60.02 crore as against nil in the corresponding previous, the PBT after EO was spurred up by 11% to Rs 280.01 crore. The tax provision including FBT and deferred tax was higher by 34% to Rs 67.91 crore and the tax rate was higher by 4.3% points. As result the growth at PAT was limited to 5% to Rs 212.10 crore. After accounting for a prior period tax write back of Rs 89.50 crore compared to a charge/ provision of Rs 1.50 crore, the net profit stood increased by sharp 50% to Rs 301.60 crore.
Nine-month performance
For the nine month ended Dec '07, the aggregate revenue was higher by 15% to Rs 4671.22 crore. Even the income from sale of electric energy was higher by 38% to Rs 3774.25 crore that from EPC contract was lower by 34% to Rs 896.97 crore. In terms of unit sale the aggregate electric energy sold for the period was 7197 million units compared to 6637 million units translating into a growth of 8%. But with the cost of energy purchased was higher by sharp 78% to Rs 1968 crore with electrical energy sourced from external source stay higher by 12% to 3836 million units, this has effectively pressurized the margin of business segment. Reflecting this, the segment margin (PBIT margin) of electrical energy business of the company was lower by 230 basis points to 8.8% resulting in a segment profit of Rs 337.94 crore (up 7% yoy) on a segment sales (including other income) of Rs 3821.90 crore (up 35%). On comparison the segment margin of EPC business was higher by 423 basis points to 8.4% during the nine month period resulting in a segment profit of Rs 76.09 crore (up 35%) despite its segment revenue erode by 33% to Rs 907.37 crore.
Other income was higher by 36% to Rs 826.87crore. With interest cost higher by 43% to Rs 240.16 crore and depreciation cost lower by 9% to Rs 170.31 crore, the PBT before EO was higher by 22 % to Rs 822.02 crore. With gain on revaluation of forex derivatives being Rs 26.55 crore as against nil in the corresponding previous period, the PBT after EO was up by 26% to Rs 848.57 crore. The tax provision including FBT and deferred tax was higher by 57% to Rs 168.64 crore. As result the growth at PAT was limited to 20% to Rs 679.93 crore. After accounting for a prior period tax write back of Rs 93.31 crore compared to a charge/ provision of Rs 1.50 crore, the net profit stood increased by sharp 37% to Rs 773.24 crore.
Power Generation Performance
Dahanu Thermal Power Station
During the nine months ended December 31, 2007, the Company's Dahanu Thermal Power Station (DTPS) operated at a Plant Load Factor (PLF) of 101.1 % against the PLF of 100.6 % achieved during the corresponding previous period.
Samalkot Power Station, Andhra Pradesh
The Samalkot Power Plant operated at a Plant Load Factor (PLF) of 49.6 %, against the PLF of 47.1 % achieved during the corresponding previous period. The improvement in PLF is mainly due to mixed fuel operation and increased gas supply for meeting the growing grid demand.
Goa Power Station
The Goa Power Station maintained a Plant Load Factor (PLF) of 83.2 % during the
Period under review against the PLF of 93 % achieved during the corresponding previous period
Wind Farm Power Project
The Wind farm operated at a Plant Load Factor (PLF) of 37 %, against the PLF of 33 % during the corresponding previous period.
EPC Business
The order book of EPC business as end of Dec '07 was Rs 8300 crore compared to Rs 4718 crore as end of Sep '07.
Other developments
During the quarter the Company converted Foreign Currency Convertible Bonds( FCCBs) of the face value of USD 177.448 million due for redemption on February 24, 2009, resulting in the allotment of 79,72,548 Equity Shares. Accordingly, the paid-up Equity Share Capital of the Company stands increased from Rs.228.57 crore to Rs.236.54 crore and the Share Premium account from Rs.5,298.75 crore to Rs.6,093.54 crore. Currently, FCCBs aggregating US$ 0.60 million are outstanding. The accounting effect, if any, of the premium foregone on equity shares issued pursuant to conversion of FCCBs shall be reflected on completion of conversion of all
FCCBs.
Reliance Power, an associate of the company taps the capital market with an initial public offering of its equity shares and the issue of the same is open for subscription from January 15, 2008 to January 18, 2008. The Company has since, made an additional investment of Rs. 720 crore by way of promoters contribution for subscribing to 1.60 crore equity shares of Reliance Power. Reliance Energy holds about 45% post issue equity stake of RPower.
Subsequent to quarter end, pursuant to the approval of shareholders through postal ballot, the Company is making a preferential offer of 4.30 crore warrants to one of the promoters AAA Project Ventures Private Limited. The warrant holder will be entitled to apply for one equity share of the Company of Rs. 10 each at a premium of Rs. 1, 812.08 per share, per warrant on or before expiry of 18 months from the date of allotment.
During the quarter, Reliance Energy Trading has become a subsidiary of the Company.
Valuation
The promoter holding as end of Dec '07 was 34.68% compared to 29.71% as end of Dec '06. The stock closed at Rs 2212.70 at BSE on Jan 17, '07.
No comments:
Post a Comment