Reliance Power (RPOWER) Q4 07/08 earnings summary

Executive summary

• FY08 was a project-development year, with 13 power projects totaling 28,200 MW of planned capacity; commercial operations had not commenced.

• Standalone profit was driven mainly by dividend and mutual-fund redemption income rather than power generation.

Financial highlights

• FY08 standalone total income was Rs 1,328.67 million vs Rs 22.53 million in FY07; net profit was Rs 946.69 million vs Rs 1.62 million.

• Consolidated FY08 total income was Rs 1,328.93 million and profit after tax and minority interest was Rs 853.79 million.

• Standalone net worth rose to Rs 13,542.68 crore from Rs 200.06 crore, following the IPO and amalgamation.

Outlook and guidance

• Planned capacity spans coal, gas, hydro and wind; the portfolio was intended to sell power through long- and short-term PPAs to utilities and industrial buyers.

• Rosa Phase I (600 MW) was in advanced construction, with generation targeted for 2009; Butibori (300 MW) was expected on-stream by 2010.

• Sasan (3,960 MW) targeted first-unit operation by May 2013 and full commissioning by April 2016; Krishnapatnam (4,000 MW) targeted first-unit operation by September 2013 and full commissioning by October 2015.

• Dadri’s 7,480 MW gas project had major clearances and land, but awaited a bankable gas-supply agreement before financial closure and EPC awards.