Reliance Inf S Regulatory News (RIFS)

19 Jan 2007 09:16

Reliance Energy Ld19 January 2007 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 31st December, 2006----------------------------------------------------------- (Rs.in crore) ---------Sr. No. Quarter 9 Months ended Year ended ----------- ended --------- ---------------- --------- --------- --------- --------- Particulars 31-12-2006 31-12-2005 31-12-2006 31-12-2005 31-03-2006 ------------ ----------- --------- --------- --------- --------- --------- Audited---- ------------ ----------- --------- --------- --------- --------- ------------- ------------ ----------- --------- --------- --------- --------- --------- 1 Net Sales of Electrical 921.06 809.88 2,743.56 2,398.56 3,179.04---- Energy --------- --------- --------- --------- --------- --------------------- 2 Income from EPC and 612.63 173.07 1,352.61 572.91 840.03---- Contracts --------- --------- --------- --------- --------- --------------------- --------- 3 Other 286.74 154.68 589.41 411.96 588.81---- Income ----------- --------- --------- --------- --------- --------- ------------ 1,820.43 1,137.63 4,685.58 3,383.43 4,607.88---- ------------ ----------- --------- --------- --------- --------- --------- 4 Total---- Expenditure ----------- --------- --------- --------- --------- --------- ------------ (a) Cost of Electrical 455.82 264.18 1,103.91 834.84 1,087.56---- Energy purchased --------- --------- --------- --------- --------- --------------------- --------- (b) Cost of 224.04 209.88 673.23 602.55 812.10---- Fuel ----------- --------- --------- --------- --------- --------- ------------ (c) Tax on 32.16 28.89 95.10 86.73 114.00---- Electricity ----------- --------- --------- --------- --------- --------- ------------ (d) Cost of Materials and---- Sub-contract --------- --------- --------- --------- --------- --------------------- Charges (EPC and 562.56 93.54 1,193.49 397.05 608.61---- Contracts) --------- --------- --------- --------- --------- --------------------- --------- (e) Staff 73.41 65.46 216.87 193.71 236.55---- Cost ----------- --------- --------- --------- --------- --------- ------------ (f) Other Expenses and 103.02 147.06 375.42 322.98 422.98---- Provisions --------- --------- --------- --------- --------- --------------------- 5 Interest and Finance 55.05 46.74 168.03 144.15 195.98---- Charges --------- --------- --------- --------- --------- --------------------- 6 Depreciation (See Note No 61.17 90.72 186.60 259.50 348.63---- 2) --------- --------- --------- --------- --------- --------------------- --------- 7 Profit before 253.20 191.16 672.93 541.92 781.47---- Tax ----------- --------- --------- --------- --------- --------- ------------ 8 Provision for Taxation :---- --------- --------- --------- --------- --------- --------------------- --------- Current Tax 16.17 35.52 75.57 75.00 85.62---- ------------ ----------- --------- --------- --------- --------- --------- Deferred 32.85 (10.20) 28.08 (17.55) (39.33)---- Tax ----------- --------- --------- --------- --------- --------- ------------ Fringe 1.65 1.20 3.75 3.60 4.29---- Benefit Tax ----------- --------- --------- --------- --------- --------- ------------ Tax adjustment for 1.50 - 1.50 - 80.55---- earlier years --------- --------- --------- --------- --------- --------------------- --------- 9 Profit after 201.03 164.64 564.03 480.87 650.34---- Tax ----------- --------- --------- --------- --------- --------- ------------10 Paid up Equity Share 213.17 201.94 213.17 201.94 212.36---- Capital --------- --------- --------- --------- --------- --------------------- (Face Value Rs. 10/- per---- Share) --------- --------- --------- --------- --------- ---------------------11 Reserves including Statutory Reserves 6820.51---- excluding Revaluation Reserves --------- --------- --------- --------- ----------------------------12 Earnings per share (On Net Profit)(* not---- annualised) --------- --------- --------- --------- ---------------------------- --------- --------- - Basic (Rs.) 9.43 * 8.16 * 26.51 * 24.30 * 32.70---- ----------- --------- --------- --------- --------- --------- ------------ - Diluted 9.10 * 7.75 * 25.73 * 23.14 * 31.46---- (Rs.) ----------- --------- --------- --------- --------- --------- ------------13 Aggregate of Non-Promoter---- Share Holding - --------- --------- --------- --------- --------- --------------------- --------- - No.of 149,803,532 98,984,288 149,803,532 98,984,288 98,984,388---- Shares ----------- --------- --------- --------- --------- --------- ------------ -Percentage of Share 70.29 49.03 70.29 49.03 46.62---- holding --------- --------- --------- --------- --------- ---------------------InterimDividend forthe period(exclusive ofdividend tax) 23.94------------------------------- --------- --------- --------- ---------Segment-wise Revenue,Results and Capital Employed----------------------------------------------------------- (Rs.in crore) --------- Quarter 9 Months ended Year ended---- ------------ ------------- ended --------- ---------------- --------- ---------Particulars 31-12-2006 31-12-2005 31-12-2006 31-12-2005 31-03-2006-------------- ------------- --------- --------- --------- --------- --------- --------- Audited---- ------------ ------------- --------- --------- --------- --------- ------------- ------------ ------------- --------- --------- --------- --------- ---------1.SegmentRevenue ------------- --------- --------- --------- --------- -----------------------(Net Sales/Income) ------------- --------- --------- --------- --------- ----------------------- ------------- ------------ ------------- --------- --------- --------- --------- ---------- ElectricalEnergy 988.13 837.39 2,838.15 2,448.62 3,249.96-------------- ------------- --------- --------- --------- --------- ---------- EPC andContracts 613.94 175.14 1,359.12 583.51 865.45-------------- ------------- --------- --------- --------- --------- ---------- Others - 0.60 0.27 1.49 5.15-------------- ------------- --------- --------- --------- --------- ---------Gross Turnover 1,602.07 1,013.13 4,197.54 3,033.62 4,120.56-------------- ------------- --------- --------- --------- --------- ---------Less:InterSegmentRevenue - 0.15 0.30 0.15 0.15------------------------- --------- --------- --------- --------- --------- ---------Net Turnover 1,602.07 1,012.98 4,197.24 3,033.47 4,120.41-------------- ------------- --------- --------- --------- --------- --------- ------------- ------------ ------------- --------- --------- --------- --------- ---------2.SegmentResults ------------- --------- --------- --------- --------- -----------------------Profit before Tax and Interestfrom each segment : --------- --------- --------- --------- ---------------------------------- ---------- ElectricalEnergy 79.19 93.61 316.20 262.23 363.71-------------- ------------- --------- --------- --------- --------- ---------- EPC andContracts 18.09 51.26 56.53 109.64 121.56-------------- ------------- --------- --------- --------- --------- ---------- Others (0.07) 0.29 (0.10) 0.63 3.58-------------- ------------- --------- --------- --------- --------- ---------Total SegmentResults 97.21 145.16 372.63 372.50 488.85-------------- ------------- --------- --------- --------- --------- --------- ------------- ------------ ------------- --------- --------- --------- --------- ---------- Interest andFinanceExpense (55.05) (46.74) (168.03) (144.15) (195.98)------------------------- --------- --------- --------- --------- --------- ---------- InterestIncome 127.08 120.40 427.44 323.71 462.96-------------- ------------- --------- --------- --------- --------- ---------- Other un-allocable Income------------------------- --------- --------- --------- --------- --------- ---------net ofexpenditure 83.96 (27.66) 40.89 (10.14) 25.65-------------- ------------- --------- --------- --------- --------- ---------Profit beforeTax 253.20 191.16 672.93 541.92 781.47-------------- ------------- --------- --------- --------- --------- --------- ------------- ------------ ------------- --------- --------- --------- --------- ---------3.CapitalEmployed ------------- --------- --------- --------- --------- ----------------------- ------------- ------------ ------------- --------- --------- --------- --------- ---------- ElectricalEnergy 3,241.58 3,004.65 3,241.58 3,004.65 3,066.09-------------- ------------- --------- --------- --------- --------- ---------- EPC andContracts 411.65 339.55 411.65 339.55 360.75-------------- ------------- --------- --------- --------- --------- ---------- Others 1.87 (0.64) 1.87 (0.64) 2.19-------------- ------------- --------- --------- --------- --------- ---------Total SegmentCapitalEmployed 3,655.10 3,343.56 3,655.10 3,343.56 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 the petitions, thepetition filed by TPC and the petition filed by the Company, by holding that theissues should be adjudicated within four months of the order of the Hon'bleBombay High Court by the Appellate Tribunal for Electricity (ATE). In theinterregnum, the parties to continue to pay in terms of the interim order,subject to adjustments on adjudication. c. Both TPC and the Company filed Special Leave Petitions in the Supreme Courtagainst the Order of Hon'ble High Court of Bombay. While disposing of thesepetitions, the Hon'ble Supreme Court directed the TPC to file an appeal beforethe ATE. TPC thereafter filed an appeal before the ATE. d. While disposing of the appeal, ATE has passed an order dated 20thDecember,2006 as under:i. The total liability of standby charges for the financial years1998-99 to 2003-04 was determined at Rs.500 crore. ii. TPC to refund Rs.354 crore (inclusive of interest of Rs.15 croreupto 31st March 2004) to the Company plus interest at 10% p.a. commencing from1st April, 2004 till the date of payment. TPC has filed an appeal in Supreme Court and it was mentioned in the bench. Thematter is posted for consideration of interim relief on 31st January, 2007.Until then, the order is stayed. Pending the outcome of the appeal filed by TPC against ATE''s order in theSupreme Court, the Company has not accounted for the reduction in standbycharges liability of Rs.15.60 crore as well as interest amount determined aspayable by TPC to the Company.2. The Company had revalued its Plant & Machinery located at Dahanuduring the financial year 2003-04 and the depreciation figures shown in theunaudited financial results are net of effect of revaluation since thecorresponding amount is withdrawn from the Revaluation Reserve which does nothave impact on profit for the quarter. 3. During the quarter, the Company purchased the balance equity shares ofBSES Kerala Power Ltd (BKPL) by virtue of which, BKPL has become a wholly ownedsubsidiary of the Company. The Company also acquired 100% of the shareholdingsin a) Reliance AWorld Ltd. b) Reliance Infrastructure Projects Private Ltd. andc) Reliance Infrastructure Services Private Ltd., and 51% shareholding inReliance Energy Transmission Limited. Consequently, these companies have alsobecome the subsidiaries of the Company. 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. Pending settlement/agreement, a provision on an estimated basis hasbeen made in the accounts for the quarter. 5. The Company, during the quarter ended 31st December, 2006 received 19investor complaints and they were resolved. There were no complaints pending atthe beginning of the quarter. 6. The statutory auditors of the Company have carried out the "Limited Review"of the results for the quarter ended 31st December, 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 18th January,2007. 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 31stDecember, 2006, except as specifically mentioned in the above Notes. For and on behalf of the Board of Directors Place: Mumbai Anil D. AmbaniDate: 18th January, 2007 Chairman & Managing Director MEDIA RELEASE RELIANCE ENERGY REPORTS NET PROFIT OF Rs 201 CRORE (US$ 45 MILLION) - AN INCREASE OF 22% FOR THE QUARTER RELIANCE ENERGY REPORTS NET PROFIT OF Rs 564 CRORE (US$ 127 MILLION) - AN INCREASE OF 17% FOR NINE MONTHS TOTAL INCOME OF Rs 4,686 CRORE (US$ 1,059 MILLION) - UP 38 % EPC DIVISION TURNOVER OF Rs 1,353 CRORE (US$306 MILLION) - UP 136 % EPC ORDERBOOK POSITION AT Rs 1,710 CRORE (US$ 386 MILLION) Mumbai, 18th January 2007: Reliance Energy Limited (REL) today announced itsunaudited financial results for the nine months ended 31st December 2006. Theperformance highlights are: • Net Profit of Rs 564 crore (US$ 127 million), against Rs 481 crore in the corresponding previous period, an increase of 17 % • Total Income of Rs 4,686 crore (US$ 1,059 million), against Rs 3,383 crore in the corresponding previous period, an increase of 38 % • Cash Profit of Rs 779 crore (US$ 176 million), against Rs 723 crore in the corresponding previous period • Quarterly net profit of Rs. 201 crore (US$ 45 million), against Rs. 165 crore in the corresponding quarter of the previous year, an increase of 22 % The Company ranks among Top 5 Indian private sector companies in terms of networth. As on 31st December 2006, the net worth of the company stood at Rs 8,458crore (US$ 1,911 million).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 nine months wereRs 2,744 crore (US$ 620 million) against Rs 2,399 crore in the correspondingprevious period, an increase of 14 %.The aggregate sales of electrical energy were 6,637 million units compared to6,080 million units in the corresponding previous period, an increase of 9 %.During the period under review, the consumer base in Mumbai Supply areaincreased by about 0.20 lakh to 25.6 lakh consumers.REL has received Golden Peacock Award 2006 for Excellence in CorporateGovernance.Power Generation: (i) Dahanu Thermal Power StationDuring the nine months ended 31st December 2006, the Company's Dahanu ThermalPower Station (DTPS) operated at a Plant Load Factor (PLF) of 100.6 % againstthe PLF of 97.0 % achieved during the corresponding previous period.DTPS received the following major awards during the period under review -1. First Prize - National Award for Meritorious Performance by CentralElectricity Authority (CEA), Government of India for its Excellent Performanceamongst Indian Thermal Power Plants for the year 2004-05. 2. Maharashtra Energy Development Agency (MEDA) State Level Award - First Prizefor Excellence in Energy Conservation & Management in Thermal Power Stationsector for the year 2005. 3. "CII - National Award for Excellence in Energy Management - 2006" - byConfederation of Indian Industry (CII). 4. "Greentech Award for Environmental Excellence - 2006". 5. Among the finalist for "TERI- Corporate Environmental Management Award -2006". 6. "Vishwakarma Rashtriya Purashkar" 2005 by Min. of Labour, GOI wasawarded to Four of DTPS employees for their outstanding contribution in work. 7. Safety Award - 2005 from National Safety Council- Maharashtra Chapterfor longest accident free period of operation. 8. "CII - National Award for Excellence in Water Management - 2006" - byConfederation of Indian Industry(CII) , Three awards -- One for ExcellenceInside the fence, One for Beyond the fence and one for Most useful Presentation. 9. International Quality Crown (IQC) Award 2006 at London by Business InitiativeDirections (BID), Spain for outstanding commitment to quality. 10. FICCI Annual Award 2005-06 for Environmental Conservation and PollutionControl given by Hon'ble Prime Minister of India, Dr.Manmohan Singh on 8 th Jan' 07.(ii) Samalkot Power Station, Andhra Pradesh:The Samalkot Power Plant operated at a Plant Load Factor (PLF) of 47%, againstthe PLF of 51 % achieved during the corresponding previous period. The lower PLFwas mainly on account of lower availability of gas.(iii) Goa Power Station:The Goa Power Station maintained a Plant Load Factor (PLF) of 93 % during theperiod under review, same as during the corresponding previous period.(iv) Wind Farm Power ProjectThe Wind farm operated at a Plant Load Factor (PLF) of 33 %, against the PLF of32 % during the corresponding previous period.Power Purchased:During the period under review, the Company purchased 3,417 million units ofelectrical energy from external sources, which is higher by 11 % compared to theoff-take in the corresponding previous period.However, the cost of energy purchased increased by 32 % to Rs 1,104 crore (US$249 million) during the nine months under review, owing to higher per unit cost.Financial Review:The total sales of electrical energy during the nine months were Rs 2,744 crore(US$ 620 million), against Rs 2,399 crore in the corresponding previous period,an increase of 14 %. The turnover of the EPC and Contracts Division was Rs 1,353 crore (US$ 306million), against Rs 573 crore in the corresponding previous period, an increaseof 136 %. The Division had an order book position of about Rs 1,710 crore (US$386 million) as on 31st December 2006. Other Income for the period under review was Rs 589 crore (US$ 133 million), anincrease of 43 %, mainly representing interest income. During the period under review, the total income of the Company was Rs 4,686crore (US$ 1,059 million), against Rs 3,383 crore in the corresponding previousperiod, an increase of 38 %. The company's Earnings Before Interest, Tax, Depreciation and Amortisation(EBITDA) increased to Rs 1,028 crore (US$ 232 million), against Rs 946 crore inthe corresponding previous period, an increase of 9 %.Interest expenditure was Rs 168 crore (US$ 38 million), which was compensated byhigher other income of Rs 589 crore. Depreciation was at Rs 187 crore (US$ 42 million) as against Rs 260 crore forthe corresponding previous period. The corporate tax liability, including the deferred taxes, for the nine monthswas Rs 109 crore (US$ 25 million), as against Rs 61 crore in the correspondingprevious period. Net profit for the nine months recorded an increase of 17 % to Rs 564 crore (US$127 million) from Rs 481 crore in the corresponding previous period. Background Reliance EnergyReliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India'sleading private sector utility group, with aggregate estimated group revenues ofRs 10,500 crore (US$ 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 20 listed private companies interms of all major financial parameters, including assets, sales, profits andmarket capitalisation. This information is provided by RNS The company news service from the London Stock Exchange