Reliance Inf S Regulatory News (RIFS)

18 Oct 2007 10:15

Reliance Energy Ld18 October 2007 RELIANCE ENERGY LIMITED------------------------------------------------------Registered Office: Reliance Energy Centre, Santa Cruz (East), Mumbai 400 055.------------------------------------------------------Website:www.rel.co.in------------------------------------------------------unaudited financial results for quarter ended September 30, 2007------------------------------------------------------ (Rs. in crore) Sr. No. Quarter ended Half Year Year ended ended Particulars 30-09-2007 30-09-2006 30-09-2007 30-09-2006 31-03-2007 Audited 1 Net Sales of Electrical Energy 1,259.45 898.92 2,544.85 1,810.50 3,610.95 2 Income from EPC and Contracts 282.28 502.71 620.89 739.98 2,082.00 3 Other Income (See Note No 3) 258.19 182.07 546.98 349.38 882.30 1,799.92 1,583.70 3,712.72 2,899.86 6,575.25 4 Total Expenditure (a) Cost of Electrical Energy Purchased 649.22 334.38 1,320.32 648.09 1,532.43 (b) Cost of Fuel 199.09 214.86 471.33 449.19 921.27 (c) Tax on Electricity 33.70 31.50 69.00 62.94 124.62 (d) Cost of Materials and Sub-contract Charges (EPC and Contracts) 222.16 439.71 513.83 630.93 1,840.62 (e) Staff Cost 104.38 74.91 204.01 143.46 313.53 (f) Other Expenses and Provisions (See Note No 3) 151.88 134.73 297.22 307.11 480.03 (g) Depreciation (See Note No 2) 55.58 63.54 113.71 125.43 240.06 5 Interest and Finance Charges 85.43 67.05 154.72 112.98 250.32 6 Profit before Tax 298.48 223.02 568.58 419.73 872.37 7 Provision for Taxation : Current Tax 33.70 33.90 64.00 59.40 90.15 Deferred Tax 17.00 1.38 33.88 (4.77) 27.15 Fringe Benefit Tax 1.50 1.35 2.85 2.10 4.77 Tax adjustment for earlier years (3.80) - (3.80) - (51.15) 8 Profit after Tax 250.08 186.39 471.65 363.00 801.45 9 Paid up Equity Share Capital 228.57 213.17 228.57 213.17 228.57 (Face Value Rs. 10 per Share) 10 Reserves including Statutory Reserves excluding Revaluation Reserves 8,412.73 11 Earnings per share (On Net Profit) (* not annualised) - Basic (Rs.) 10.94 * 8.76 * 20.64 * 17.05* 37.20 - Diluted (Rs.) 10.67 * 8.50 * 20.06 * 16.60* 36.27 12 Aggregate of Public Shareholding - - No.of Shares 146,501,662 149,219,586 146,501,662 149,219,586 149,803,562 - Percentage of Shareholding 64.11 70.01 64.11 70.01 65.55 segment-wise revenue, results and capital employed (Rs. in crore) Quarter Half Year Year ended ended ended Particulars 30-09-2007 30-09-2006 30-09-2007 30-09-2006 31-03-2007 Audited 1 Segment Revenue - Electrical Energy 1,275.99 915.98 2,574.58 1,850.02 3,741.79 - EPC and Contracts 287.09 503.00 626.86 745.18 2,094.56 - Others - 0.10 0.02 0.27 0.27 1,563.08 1,419.08 3,201.46 2,595.47 5,836.62 Less : Inter Segment Revenue - - - 0.30 0.30 Net Sales / Income fromoperations 1,563.08 1,419.08 3,201.46 2,595.17 5,836.32 - Unallocated Income 236.84 164.62 511.26 304.69 738.93 Total Sales / Income 1,799.92 1,583.70 3,712.72 2,899.86 6,575.25 2 Segment Results Profit before Tax and Interestfrom each segment : - Electrical Energy 151.72 104.05 240.61 237.01 323.49 - EPC and Contracts 33.48 23.31 50.72 38.44 122.62 - Others (0.02) (0.02) (0.08) (0.03) 0.01 Total 185.18 127.34 291.25 275.42 446.12 - Interest and Finance Charges (85.43) (67.05) (154.72) (112.98) (250.32) - Interest Income 124.86 152.25 267.43 300.36 599.98 - Other un-allocable Income net of expenditure 73.87 10.48 164.62 (43.07) 76.59 ---------Profit before Tax 298.48 223.02 568.58 419.73 872.37 3 Capital Employed (Segment Assets - Segment Liabilities) - Electrical Energy 3,179.93 3,074.63 3,179.93 3,074.63 2,842.36 - EPC and Contracts 502.11 348.57 502.11 348.57 422.32 - Others 1.73 2.00 1.73 2.00 1.81 - Unallocated Corporate Assets (net) 6,112.59 4,838.86 6,112.59 4,838.86 6,075.41 Total 9,796.36 8,264.06 9,796.36 8,264.06 9,341.90 Notes: 1. In the matter of Standby Charges, the Company had accounted liabilities inits books of accounts in the year ended March 31, 2005 based on the MaharashtraElectricity Regulatory Commission (MERC) Order dated May 31, 2004. Pending finaldetermination of the matter by Hon'ble Supreme Court, the Company has notaccounted for the reduction of Rs. 15.60 crore in standby charges liability fromRs. 515.60 crore determined by MERC as well as interest amount payable by TheTata Power Company Limited (TPC) to the Company (@ 10% p.a. commencing fromApril 1, 2004 till the date of payment) as per Appellate Tribunal forElectricity Order dated December 20, 2006. As per the Supreme Court interimorder dated February 7, 2007, TPC has furnished a bank guarantee for Rs. 227crore and also deposited Rs. 227 crore with the Court which the Company haswithdrawn and accounted as other liabilities pending final adjustment. 2. The Company had revalued its Plant and Machinery located at Dahanu during thefinancial year 2003-04 and the depreciation figures shown in the unauditedfinancial results are net of effect of revaluation since the correspondingamount is withdrawn from the Revaluation Reserve which does not have impact onprofit for the quarter. 3. The Company has changed the accounting policy with effect from April 1, 2007,whereby the foreign exchange derivative instruments are revalued at fair valuesat reporting period end and any profit or loss arising on the revaluation isrecognized in the Profit and Loss Account. Accordingly, an amount of Rs. 33.06crore is charged for the half year and an amount of Rs. 49.61 crore is creditedfor the quarter ended September 30, 2007 to the Profit and Loss Account onrevaluation of foreign exchange derivative instruments due to the change in theaccounting policy. 4. Tax Liability has been provided on the basis of Minimum Alternate Taxcalculations. 5. Reliance Power Limited, an associate company in which the Company holds 50%of equity capital, has filed a Draft Red Herring Prospectus with the Securitiesand Exchange Board of India on October 3, 2007 for its proposed Initial PublicOffering of 130,00,00,000 equity shares of Rs. 2 each for cash at a premium tobe decided through the book building process. 6. There was no exceptional/ extraordinary item during the quarter/ half yearended September 30, 2007. 7. Information on investor complaints pursuant to Clause 41 of the listingagreement for the quarter ended September 30, 2007: opening: Nil: additions: 214disposals: 214 closing: Nil 8. The above results for the quarter ended September 30, 2007, have beensubjected to a "Limited Review" by the auditors of the Company, as per thelisting agreement entered into with the stock exchanges in India. 9. After review by the Audit Committee, the Board of Directors of the Companyhave approved the results at their meeting held on October 17, 2007. 10. Figures of the previous year / period have been regrouped / reclassifiedwherever considered necessary. For and on behalf of the Board of Directors Place: Mumbai Anil D. Ambani Date: October 17, 2007 Chairman MEDIA RELEASE RELIANCE ENERGY REPORTS NET PROFIT OF Rs 472 CRORE (US$ 118 MILLION) - AN INCREASE OF 30 % FOR THE HALF YEAR TOTAL INCOME OF Rs 3,712 CRORE (US$ 932 MILLION) - UP 28 % NET WORTH OF Rs 9,796 CRORE (US$ 2.5 BILLION) EPC DIVISION TURNOVER OF Rs 621 CRORE (US$ 156 MILLION) EPC ORDER BOOK POSITION AT Rs 4,718 CRORE (US$ 1.2 BILLION) Mumbai, October 17, 2007: Reliance Energy Limited (REL) today announced itsunaudited financial results for the half year ended September 30, 2007. Theperformance highlights are: • Net Profit of Rs 472 crore (US$ 118 million), against Rs 363 crore in the corresponding previous period, an increase of 30 % • Total Income of Rs 3,712 crore (US$ 932 million), against Rs 2,900 crore in the corresponding previous period, an increase of 28 % • Cash Profit of Rs 619 crore (US$ 155 million), against Rs 484 crore in the corresponding previous period, an increase of 28 % • Annualised Cash Earnings Per Share (Cash EPS) of Rs 54.2 (US$ 1.4), for the half year ended September 30, 2007 • Annualised Earnings Per Share (EPS) of Rs 41.3 (US$ 1.03), for the half year ended September 30, 2007 The Company ranks among top Indian private sector companies in terms of networth. As on September 30, 2007, the net worth of the company stood at Rs 9,796crore (US$ 2.46 billion). The Company remains debt free at the net level, and enjoys the top-end ratingsof 'AAA' and 'Ind AAA' by CRISIL and FITCH, respectively. Reliance Power Limited, an associate company in which REL holds 50 % of equitycapital, has filed a Draft Red Herring Prospectus with the Securities andExchange Board of India on October 3, 2007 for its proposed Initial PublicOffering of 130 crore equity shares of Rs 2 each for cash at a premium to bedecided through the book building process. Management Discussion and Analysis Energy Sales: The Company's aggregate revenues from energy sales during the half year were Rs2,543 crore (US$ 638 million) against Rs 1,823 crore in the correspondingprevious period, an increase of 40 %. The aggregate sales of electrical energy were 4,860 million units compared to4,416 million units in the corresponding previous period, an increase of 10 %. During the period under review, the consumer base in Mumbai Supply areaincreased by about 0.2 lakh to 26.0 lakh consumers. Power Generation: (i) Dahanu Thermal Power Station During the half year ended September 30, 2007, the Company's Dahanu ThermalPower Station (DTPS) operated at a Plant Load Factor (PLF) of 99.1 % against thePLF of 99.2 % achieved during the corresponding previous period. (ii) Samalkot Power Station, Andhra Pradesh The Samalkot Power Plant operated at a Plant Load Factor (PLF) of 66.2 %,against the PLF of 48.9 % achieved during the corresponding previous period. Theimprovement in PLF is mainly due to mixed fuel operation and increased gassupply for meeting the growing grid demand. (iii) Goa Power Station The Goa Power Station maintained a Plant Load Factor (PLF) of 79.3% during theperiod under review against the PLF of 88.9 % achieved during the correspondingprevious period (iv) Wind Farm Power Project The Wind farm operated at a Plant Load Factor (PLF) of 46 %, against the PLF of52 % during the corresponding previous period. Power Purchased: During the period under review, the Company purchased 2,633 million units ofelectrical energy from external sources, which is higher by 14 % compared to theoff-take in the corresponding previous period. However, the cost of energy purchased increased by 104 % to Rs 1,320 crore (US$331 million) during the half year under review, owing to higher per unit cost ofRs 5.0 for the period against Rs 2.8 in the previous period. Financial Review: The total sales of electrical energy during the half year were Rs 2,543 crore(US$ 638 million), against Rs 1,823 crore in the corresponding previous period,an increase of 40 %. The turnover of the EPC and Contracts Division was Rs 621 crore (US$ 156million), against Rs 740 crore in the corresponding previous period. Other Income for the period under review was Rs 547 crore (US$ 137 million), anincrease of 57 %, mainly representing interest income. During the period under review, the total income of the Company was Rs 3,712crore (US$ 932 million), against Rs 2,900 crore in the corresponding previousperiod, an increase of 28 %. The company's Earnings Before Interest, Tax, Depreciation and Amortisation(EBITDA) increased to Rs 837 crore (US$ 210 million), against Rs 658 crore inthe corresponding previous period, an increase of 27 %. Interest expenditure was Rs 155 crore (US$ 39 million), which was compensated byhigher other interest income of Rs 267 crore. Depreciation was at Rs 114 crore (US$ 28.5 million) as against Rs 125 crore forthe corresponding previous period. The corporate tax liability, including the deferred taxes, for the half year wasRs 98 crore (US$ 24.5 million), as against Rs 57 crore in the correspondingprevious period. Net profit for the half year recorded an increase of 30 % to Rs 472 crore (US$118 million) from Rs 363 crore in the corresponding previous period. BACKGROUND Reliance Energy Ltd. Reliance Energy, a part of Reliance - Anil Dhirubhai Ambani Group, is India'sleading private sector utility Company. Reliance Anil Dhirubhai Ambani Group currently have market capatalisation ofover Rs 2,50,000 crore, net worth in excess of Rs 40,000 crore, cash flow of Rs9,000 crore, net profit of Rs 5,000 crore and zero net debt. The group distributes nearly 28 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, net worth, profitsand market capitalisation. This information is provided by RNS The company news service from the London Stock Exchange