Reliance Power (RPOWER) Q4 17/18 earnings summary

Executive summary

• FY2017-18 consolidated total income was ₹10,123 crore vs ₹10,892 crore; net profit ₹1,035 crore vs ₹1,104 crore; EPS ₹3.69 vs ₹3.94.

• Operating capacity was 5,945 MW, with a 20 mtpa operating coal mine; thermal plants achieved 85% PLF vs the India average of 58%.

Financial highlights

• Consolidated revenue from operations was ₹9,83,982 lakh vs ₹10,39,565 lakh; PBT was ₹1,23,134 lakh vs ₹1,42,542 lakh.

• Consolidated finance costs rose to ₹2,92,597 lakh from ₹2,84,308 lakh; fuel costs fell to ₹3,98,520 lakh from ₹4,69,492 lakh.

• Standalone PAT fell to ₹225 lakh from ₹6,426 lakh; finance costs rose to ₹40,678 lakh from ₹29,028 lakh.

• Consolidated operating cash flow was ₹4,36,472 lakh vs ₹4,70,536 lakh; cash and cash equivalents closed at ₹58,459 lakh vs ₹17,647 lakh, including restricted cash of ₹43,924 lakh.

Outlook and guidance

• Bangladesh Phase I comprises a 718 MW net combined-cycle gas plant and a 500 mmscfd LNG terminal; agreements were executed and ADB approved $583 million in financing and partial risk guarantees.

• Medium-term profit improvement was expected from stronger operating-subsidiary cash flows and asset monetisation proceeds used for deleveraging and lower finance costs.

• Growth plans included projects under development and inorganic opportunities; the remaining Samalkot capacity modules were being considered for development in Samalkot, Bangladesh or another suitable location.