Reliance Power (RPOWER) Q4 10/11 earnings summary

Executive summary

• First full year of Rosa Phase I operations drove initial operating profit; the 600 MW plant ran at over 90% PLF during the last nine months of FY11, with over 100% PLF reported after fuel and evacuation constraints eased.

• Consolidated total income reached ₹1,918.03 crore versus ₹843.38 crore in FY10; net profit was ₹760.44 crore versus ₹683.89 crore, and basic and diluted EPS was ₹2.94 versus ₹2.85.

• Planned generation portfolio exceeded 35,000 MW, with 600 MW operational and the rest at different development stages; associated coal mines had potential production of over 95 MTPA.

Financial highlights

• Consolidated sale of energy was ₹1,023.68 crore in FY11 versus ₹20.72 crore in FY10; total income was ₹1,918.03 crore versus ₹843.38 crore.

• Consolidated profit before tax was ₹771.998 crore versus ₹702.60 crore; net profit was ₹760.44 crore versus ₹683.89 crore.

• Other income included ₹531.49 crore of profit on mutual fund redemptions; total other income was ₹863.27 crore.

• Standalone total income was ₹471.53 crore versus ₹388.07 crore, and standalone profit after tax was ₹274.54 crore versus ₹273.23 crore.

Outlook and guidance

• Target remained to reach 5,000 MW of operating capacity by 2012; Rosa Phase II (600 MW), Butibori (600 MW) and the first Sasan UMPP unit were expected by 2012.

• Samalkot’s 2,400 MW open-cycle phase was expected in FY12, with the combined-cycle phase planned for the following year; its first unit was scheduled for 2011.

• The 100 MW solar thermal project was scheduled for commissioning in 2013; a 40 MW solar photovoltaic project at the same site was scheduled for 2012.

• Sasan mine production was expected before the first generating unit; approved Indian mine plans allowed production up to 65 MTPA, while Indonesian mine plans targeted 25 MTPA.

• The 3,960 MW Tilaiya UMPP’s first unit was scheduled for May 2015 and full commissioning by May 2017; Krishnapatnam was scheduled for completion in 2015.