Reliance Inf S Regulatory News (RIFS)

24 Jul 2006 07:00

Reliance Energy Ld22 July 2006 RELIANCE ENERGY LIMITED Registered Office: Reliance Energy Center,Santa Cruz (East),Mumbai 400 055. Website:www.rel.co.in Unaudited Financial Results for the Quarter ended 30th June, 2006 (Rs.in crore)Sr. No. Quarter ended Year ended Particulars 30-06-2006 30-06-2005 31-3-2006 1 Net Sales of 917.58 782.64 3,179.04 Electrical Energy2 Income from EPC and Contracts 237.27 166.44 840.033 Other Income 171.12 135.36 588.81 1,325.97 1,084.44 4,607.884 Total Expenditure (a) Cost of Electrical Energy 313.71 275.31 1,087.56 purchased (b) Cost of Fuel 234.33 204.69 812.10 (c) Tax on 31.44 29.01 114.00 Electricity (d) Cost of Materials and Sub-contract Charges (EPC and Contracts) 191.22 133.53 608.61 (e) Staff Cost 68.55 65.31 236.55 (f) Other Expenses and Provisions 182.19 80.34 422.985 Interest and Finance Charges 45.93 43.32 195.986 Depreciation (See Note No 2) 61.89 81.72 348.637 Profit before 196.71 171.21 781.47 Tax8 Provision for Taxation : Current Tax 25.50 12.90 85.62 Deferred Tax (6.15) 0.75 (39.33) Fringe Benefit 0.75 0.90 4.29 Tax Tax adjustment for earlier years 0.00 0.03 80.559 Profit after Tax 176.61 156.63 650.3410 Paid up Equity Share Capital 212.36 195.36 212.36 (Face Value Rs. 10/- per Share)11 Reserves including Statutory Reserves excluding Revaluation Reserves12 Earnings per share (On Net Profit)(* not annualised) - Basic (Rs.) 8.32 * 8.16 * 32.70 - Diluted (Rs.) 8.14 * 7.64 * 31.4613 Aggregate of Non-Promoter Share Holding - - No.of Shares 98,984,388 92,514,064 98,984,388 -Percentage of Share holding 46.62 47.36 46.62Interim dividend for the period 20.41(exclusive of dividend tax) Segment-wise Revenue,Results and Capital Employed (Rs.in crore) Quarter ended Year endedParticulars 30-06-2006 30-06-2005 31-3-2006 1.Segment Revenue(Net Sales/Income) - Electrical Energy 934.04 790.90 3,249.96- EPC and Contracts 242.18 167.62 865.45- Others 0.17 0.50 5.15Gross Turnover 1,176.39 959.02 4,120.56Less:Inter Segment 0.30 - 0.15RevenueNet Turnover 1,176.09 959.02 4,120.41 2.Segment ResultsProfit before Tax and Interest fromeach segment :- Electrical Energy 132.96 77.98 363.71- EPC and Contracts 15.13 11.92 121.56- Others (0.01) 0.20 3.58Total Segment 148.08 90.10 488.85Results - Interest and Finance Expense (45.93) (43.32) (195.98)- Interest Income 148.11 112.51 462.96- Other un-allocableIncomenet off expenditure (53.55) 11.92 25.65Profit before Tax 196.71 171.21 781.47 3.Capital Employed - Electrical Energy 3,158.76 2,871.59 3,066.09- EPC and Contracts 266.93 367.90 360.75- Others 2.12 (0.45) 2.19Total Segment Capital Employed 3,427.81 3,239.04 3,429.03 Notes:1. a. In the matter of standby charges, Maharashtra Electricity RegulatoryCommission (MERC) had passed an order dated 31st May, 2004 as under: i. The total liability for the financial years 1998 - 99 to 2003-04 wasdetermined at Rs. 515.60 crore which had been debited to the Profit & LossAccount up to 31st March, 2005. ii. The Tata Power Company Limited (TPC) to refund an amount of Rs. 321.13 crore(net of interest of Rs. 1.17 crore) to the Company for the said period plusinterest at 10 per cent per annum commencing from 1st April, 2004 till the dateof payment. As an interim order, the Hon'ble High Court of Bombay granted stayof payment by TPC, but directed TPC to provide a Bank Guarantee of Rs. 313.93crore in favour of the Hon'ble High Court of Bombay. b. The Hon'ble High Court of Bombay has disposed of both thepetitions, the petition filed by TPC and the petition filed by the Company, byholding that the issues should be adjudicated within four months of the order ofthe Hon'ble Bombay High Court by the Appellate Tribunal for Electricity. In theinterregnum, the parties to continue to pay in terms of the interim order,subject to adjustments on adjudication. c. The Company's Special Leave Petitions against the interim and final orders ofthe Hon'ble High Court of Bombay have been admitted by the Hon'ble Supreme Courtand TPC has also filed a Special Leave Petition before the Supreme Courtchallenging the final order passed by the Hon'ble Bombay High Court. The Hon'bleSupreme Court has since disposed of both the Special Leave Petitions withdirection to TPC to file an appeal before the Appellate Tribunal forElectricity. TPC has since filed an appeal hearing of which has been completedby the Appellate Tribunal for Electricity and their judgement is awaited. 2. Depreciation for the current quarter is net of prior year adjustmentaggregating Rs. 10.01 crore. Further the Company had revalued its Plant &Machinery located at Dahanu during the financial year 2003-04 and thedepreciation figures shown in the unaudited financial results are net of effectof revaluation since the corresponding amount which was hitherto being withdrawnfrom the General Reserve is now withdrawn from the Revaluation Reserve whichdoes not have impact on profit for the quarter. 3. Pursuant to the Scheme of Amalgamation and Arrangement between RelianceEnergy Ventures Limited ("REVL"), the Company and their respective Shareholdersand creditors ("Scheme"), as sanctioned by the Hon'ble High Court of Judicatureat Bombay vide order dated 23rd June, 2006 ("Order"), REVL stands amalgamatedwith the Company with effect only from 17th July, 2006, the date on which thecertified copies of the said Order were filed with Registrar of Companies (ROC),Maharashtra, Mumbai. In terms of the Scheme, the Appointed Date of Amalgamationis the effective date i.e. 17th July, 2006. Accordingly the Scheme has no impacton the accounts of the Company for the quarter ended 30th June, 2006. 4. Wage agreements with unionised employees and officers expired on 30thJune, 2006 and 31st March, 2006 respectively. Negotiations with the unionisedcategory are in progress for a settlement, which will be effective from 1stJuly, 2006. In respect of officers, pending settlement, a provision on anestimated basis has been made in the accounts for the quarter. 5. The Company, during the quarter ended 30th June, 2006 received 2 investorcomplaints and both were resolved. There were no complaints pending at thebeginning of the quarter. 6. The statutory auditors of the Company have carried out the "Limited Review"of the results for the quarter ended 30th June, 2006 as per the listingagreements entered into with the stock exchanges in India. 7. After review by the Audit Committee, the Board of Directors of theCompany took the above results on record at their Meeting held on 19th July,2006. 8. Figures of the previous year / period have been regrouped /reclassified wherever considered necessary. 9. There has not been any significant change in or any special factorinfluencing the business activities of the Company during the quarter ended 30thJune, 2006, except as specifically mentioned in the above Notes. For and on behalf of the Board of Directors Place: Mumbai Anil D. AmbaniDate: 19th July, 2006 Chairman & Managing Director RELIANCE ENERGY REPORTS NET PROFIT OF Rs 177 CRORE (US$ 38 MILLION) FOR THE QUARTER - AN INCREASE OF 13% TOTAL INCOME OF Rs 1,326 CRORE (US$ 288 MILLION) FOR THE QUARTER, AN INCREASE OF 22% CASH PROFIT OF Rs 238 CRORE (US$ 52 MILLION) FOR THE QUARTER NET WORTH OF Rs 8,042 CRORE (US$ 1.7 BILLION) EPC ORDER BOOK POSITION AT Rs 3,350 CRORE (US$ 727 MILLION) Mumbai, 19th July 2006: Reliance Energy Limited (REL) today announced itsunaudited financial results for the quarter ended 30th June 2006. Theperformance highlights are: • Net Profit of Rs 177 crore (US$ 38 million) for the quarter ended 30th June, 2006, against Rs 157 crore in the corresponding previous period, an increase of 13% • Total Income of Rs 1,326 crore (US$ 288 million) for the quarter ended 30th June, 2006, against Rs 1,084 crore in the corresponding previous period • Cash Profit of Rs 238 crore (US$ 52 million) for the quarter ended 30th June, 2006 • Annualised Cash Earnings Per Share (Cash EPS) of Rs 45 (US$ 1.0), for the quarter ended 30th June, 2006 • Annualised Earnings Per Share (EPS) of Rs 33.3 (US$ 0.7), for the quarter ended 30th June, 2006 Net worth: As on 30th June 2006, the net worth of the company has increased to Rs 8,042crore (US$ 1.8 billion). The Company ranks among the top Indian private sectorcompanies in terms of net worth. Credit Rating: The Company remains debt free at the net level, and enjoys the top-end ratingsof 'AAA' and 'Ind AAA' by CRISIL and FITCH, respectively. Management Discussion and Analysis: Energy Sales: The Company's aggregate revenues from energy sales during the quarter ended 30thJune 2006 was Rs 918 crore (US$ 199 million) against Rs 783 crore in thecorresponding previous period, an increase of 17%. The aggregate sales of electrical energy were 2,229 million units during theperiod under review, an increase of 3.4% over the corresponding previous period. During the period under review, the consumer base in Mumbai Supply areaincreased by about 0.3 lakh to 25.2 lakh consumers. Power Generation: (i) Dahanu Thermal Power Station During the period under review, the Company's Dahanu Thermal Power Station(DTPS) operated at a Plant Load Factor (PLF) of 104.3% against the PLF of 102.9%achieved during the corresponding previous period. (ii) Samalkot Power Station, Andhra Pradesh: The Samalkot Power Plant operated at a Plant Load Factor (PLF) of 51.3%, againstthe PLF of 55.9% achieved during the corresponding previous period. The lowerPLF was mainly on account of lower availability of gas. (iii) Goa Power Station: The Goa Power Station maintained a Plant Load Factor (PLF) of 98.1% during theperiod under review. (iv) Wind Farm Power Project The Wind farm operated at a Plant Load Factor (PLF) of 30.9%, against the PLF of31.4 during the corresponding previous period. Power Purchased: During the period under review, the Company purchased 1,148 million units ofelectrical energy from external sources, which is higher by 8% compared to theoff--take in the corresponding previous period. The cost of energy purchased increased by 14% to Rs 314 crore (US$ 68 million)during the period under review. Financial Review: The total sales of electrical energy during the quarter ended 30th June, 2006was Rs 918 crore (US$ 199 million), against Rs 783 crore in the correspondingprevious period, an increase of 17%. The turnover of the EPC and Contracts Division for the Quarter ended 30th June,2006, was Rs 237 crore (US$ 52 million), against Rs 166 crore in thecorresponding previous period. The Division had an order book position of aboutRs 3,350 crore (US$ 727 million) as on 31st March 2006. Other Income for the period under review was Rs 171 crore (US$ 37 million), anincrease of 26%, mainly representing interest income. During the period under review, the total income of the Company was Rs 1,326crore (US$ 288 million), against Rs 1,084 crore in the corresponding previousperiod. The company's Earnings Before Interest, Tax, Depreciation and Amortisation(EBITDA) increased to Rs 305 crore (US$ 66 million), against Rs 296 crore inthe corresponding previous period, an increase of 3%. The company's EBITDA margin during the quarter ended 30th June, 2006 works outto 23.0%. Interest expenditure was Rs 46 crore (US$ 10 million), which was more thanoffset by higher other income of Rs 171 crore. Depreciation was at Rs 62 crore (US$ 13 million) as against Rs 82 crore for thecorresponding previous period. The corporate tax liability, including the deferred taxes, for the period underreview was Rs 20 crore (US$ 4.3 million), as against Rs 15 crore in thecorresponding previous period. Net profit for the quarter ended 30th June, 2006, recorded an increase of 13% toRs 177 crore (US$ 38 million) from Rs 157 crore in the corresponding previousperiod. Amalgamation of Reliance Energy Ventures Ltd: The amalgamation of Reliance Energy Ventures Ltd. (REVL) with the Company hasbecome effective on 17th July, 2006. The Register of Members (equity shareholders) and transfer books of REVL will beclosed from 1st August, 2006 to 5th August, 2006 (both days inclusive) for thepurpose of determining the persons who will be entitled to the equity shares tobe issued and allotted by the Company, in terms of the Scheme. Background Reliance Energy Reliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India'sleading private sector utility group, with aggregate estimated group revenues ofRs 10,500 crore (US$ 2.3 billion), and total assets of Rs 10,800 crore (US$ 2.4billion). The group distributes nearly 21 billion units of power to over 5 millionconsumers in Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 sq.kms. Reliance Energy generates 941 MW of power, through its power plants located inMaharashtra, Andhra Pradesh, Kerala, Karnataka and Goa. Reliance Energy is ranked amongst India's top listed private companies in termsof all major financial parameters, including assets, sales, profits and marketcapitalisation. This information is provided by RNS The company news service from the London Stock Exchange