Reliance Power Q1 net profit flat at Rs196 crore
13 Aug 2011
Anil Dhirubhai Ambani Group company Reliance Power has posted a consolidated net profit of Rs196 crore for the first quarter of the current financial year ended 30 June 2011, against Rs195 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) from generating assets rose 245 per cent to Rs208 crore.
Total income for the period, however, was up 71 per cent at Rs689 crore, against Rs401 crore in the previous-year quarter.
Most of R-Power's operating revenue and profit was driven by its 600 MW plant at Rosa in Uttar Pradesh, which operated at a load factor of 91 per cent during the quarter.
"As more and more projects come onstream, operational revenue will increase in coming quarters, but we will also end up spending more money to build them," Reliance Power's CEO JP Chalasani said.
While the company's power generation and sales increased, higher fuel costs squeezed margins and hence profitability. R Power's total costs shot up 200 per cent during the quarter to Rs385 crore from Rs128 crore in the previous-year quarter.
Fuel cost surged to Rs307 crore during the April-June 2011 quarter from Rs73 crore during the previous-year quarter.
Chalasani attributed this to the non-availability of coal and the consequent sourcing of the fuel from the spot market, which, he said, remained a concern for the company.