Reliance Power Posts Weak Q3FY14 Results

Reliance Power one of the India’s leading private power generating company, engaged in the business of setting up and operating power projects and developing coal mines in India and Indonesia  announced its unaudited quarterly result on February 6, 2014.

The revenue of the company comprises income from sale of power and from the associated business activities. The associated business activities include project management, supervision and allied services for generation. The revenue of the company in this quarter on YoY basis has reduced by more than 6%. The total revenue for Q3FY14 stood at Rs 1372.61 crore as against Rs 1463.84 crore in the same quarter of the previous year while on quarterly basis it has increased by around 4%. The other income in this quarter has also reduced by more than 9% YoY to Rs 110.92 crore compared to the same quarter of the previous year.

The expenditure on power & fuel, employees cost, depreciation, interest and other expenses for the Q3FY14 was Rs 976.02 crore against expense of Rs 1041.45 crore during the same period of the previous year. The total expenses in this quarter has reduced mainly due to reduction in power & fuel by 11% YoY to Rs 806.78 crore which contributes more than 82% of the total expenses in the Q3FY14, while the company has also observed reduction in employee cost by around 13% YoY to Rs 18.7 crore during this quarter. The reduction in cost of power & fuel and reduction in sales envisage that the company has reduced its output in this quarter. While the interest in this quarter has increased by more than 20% YoY to Rs 179.89 crore compared to the same quarter of the previous year. 

On the EBITDA front, the company has witnessed a growth of more than 16% QoQ basis to Rs 500.24 crore, while it has increased marginally by more than 1% on yearly basis. The EBITDA in this quarter has increased because of the reduction in the total expenses in this quarter. The EBITDA margin in the Q3FY14 has increased to 36.44% compared to 33.65% in the same quarter of the last year.

The company has reported a growth of more than 6% QoQ in the profit after tax to Rs 267.22 crore for the quarter ended December 31, 2013 compared to Rs 250.5 crore for the quarter ended September 31, 2012, while on yearly basis it has increased marginally by 0.57%. The profit in this quarter has increased mainly due reduction in depreciation and tax. The tax in this quarter has reduced by 53% YoY to Rs 60.4 crore compared to the same quarter of the previous year. While the depreciation in this quarter has reduced by more than 47% YoY to Rs 103.65 crore compared to the same quarter of the previous year. The PAT margin in this quarter stood at 19.47% compared to the same quarter of the previous year at 18.15%.