Reliance Power net grows marginally to Rs 240 crore

Written by fe Bureau | Mumbai | Updated: Jul 31 2013, 15:53pm hrs
Anil Ambani-controlled Reliance Power on Tuesday reported a flat consolidated net profit of R240.1 crore for the quarter ended June, compared with a profit of R239.5 crore in the corresponding period last year, as a decline in fuel costs helped offset a slight fall in revenue.

Net sales for the first quarter fell slightly to R1,122.85 crore, from R1135.8 crore in the same quarter last year. Fuel costs fell 13% to R632.4 crore from R725.8 crore in the year ago quarter.

The company, which has an operating portfolio of 2,545 MW, expressed hope that performance will improve after it won regulatory approval for the sale of power from its 600 MW Butibori project in Maharashtra on a cost-plus basis.

The regulatory approval for selling power on cost-plus basis from the 600 MW Butibori power project would pave the way for substantially mitigating the sectoral challenges such as fuel and commercial risks for the plant and I am confident of improved performance once the off-take commences, RPower CEO JP Chalasani said.

The companys 1,200 MW Rosa power plant in UP operated at an availability of 100%, but had a plant load factor (PLF) of just 72%. The Rosa plant brought in revenue of R961 crore in the quarter. The 40 MW Dhursar solar PV plant in Rajasthan generated a record 20 million units in the first quarter, boosting net profit by R14 crore.

RPower, which has captive coal reserves estimated at more than two billion tonnes, said construction activity is progressing for the second 660 MW unit of its 3960 MW Sasan power plant in Madhya Pradesh and the project is on track to be commissioned ahead of bid schedule.

The companys shares, which have lost nearly a quarter of their value since the start of the year, closed down 3.5% at R72.25 on the BSE on Tuesday.