Reliance Power (RPOWER) Q4 09/10 earnings summary

Executive summary

• FY09-10 marked a shift from project development to power generation, with the first 300 MW Rosa unit entering commercial operation on March 12, 2010.

• The planned generation portfolio was approximately 35,000 MW; financial closure had been achieved for nearly 10,000 MW, with construction underway across multiple projects.

Financial highlights

• Consolidated total income was Rs 843.38 crore versus Rs 360.38 crore in FY08-09; net profit was Rs 683.89 crore versus Rs 244.51 crore.

• Consolidated EPS was Rs 2.85 versus Rs 1.02; standalone income was Rs 3,880.73 million and standalone profit after tax was Rs 2,732.33 million.

• Consolidated sale of energy was Rs 20.72 crore; investment dividends and mutual-fund redemption gains formed a substantial part of reported income.

Outlook and guidance

• The second 300 MW Rosa Stage I unit was expected before its PPA schedule of June 2010; Rosa Phase II was scheduled to begin generation by March 2012.

• Sasan's first unit was scheduled for March 2012; Krishnapatnam's first unit for September 2013 and full commissioning by October 2015; Tilaiya's first unit for May 2015 and full commissioning by May 2017.

• Financial closure for the 3,960 MW Chitrangi project was being pursued, with most debt sanctions obtained; construction of gas projects depended on firming up gas supply.