RELIANCE POWER=RESULTS FOR Q2 FY 2012 =Q/E SEP,2011 = PROJECTS MAKING PROGRESS=

Reliance Power Limited

NSE Symbol        RPOWER

Reliance Power results for Q2 FY 2012 (Consolidated) are analysed below :

Net Sales stands at Rs.487.55 cr – compared to Rs.541.80 cr(Down by -10.01%) in Q1 FY 12 and Rs.168.69 cr (Up by 189.01%) in 2 FY 11.

Total Expenditure stands at Rs.396.79 cr in Q2 FY 12 – compared to Rs.385.47(Up by 2.93%) in Q1 FY 12 and Rs.177.99 Cr in Q2 FY 11 (Up by 122.92%).

Profit from Operations comes to Rs.90.76 cr in Q2 FY 12 – compared to Rs.156.33 cr (down by -41.94%) in Q1 FY 12; and Rs.(-)9.3 cr in Q2 FY 11(Loss in Q2 FY 11). Thus, R Power is slowly moving into Operational Profits from losses during last year.

Other Income for Q2 FY 12 stands at Rs.263.14 cr –compared to Rs.147.43 Cr (Up by 78.49%) in Q1 FY 12 ; and Rs.343.72 Cr (Down by -23.44%) in Q2 FY 11.

Interest expense for Q2 FY 12 stands at Rs.75.32 cr – compared to Rs.76.09 cr (Down by -1.01%) in Q1 FY 12; and Rs.49.90 cr (Up by 50.93%) in Q2 FY 11.

Profit before tax comes to Rs.278.59 Cr in Q2 FY 12 –compared to Rs.227.67 cr (Up by 22.36%) in Q1 FY 12; and Rs.284.51 cr (Down by -2.08%) in Q2 FY 11.

Tax Expense stands at Rs.43.11 cr in Q2 FY 12 – compared to Rs.31.55 Cr (down by 36.63%) in Q1 FY 12; and Rs.49.72 cr (down by -13.28%) in Q2 FY 11.

Net Profit stands at Rs.235.48 cr in Q2 FY 12 – compared to Rs.196.12 cr in Q1 FY 12 (up by 20.07%) ; and Rs.234.8 cr (Up by 0.29%) in Q2 FY 11.

Basic EPS  on a Face value of Rs.10 is  Rs.0.84 in Q2 FY 12; Rs.0.7 in Q1 FY 12; Rs.0.98 in Q2 FY 11.

Current Market Price is :Rs.70.70. 52 week high price : 162.20;  52 week low price : 68.50

At this point of time in the life of Reliance Power, its EPS etc are unimportant for market valuation of its share. Where does it stand in implementation of its huge projects? This is the crucial question.

To assess that, the details available on its web site of R Power on the progress of the various projects are placed below – under the head FACT SHEET -2011.

Its recent announcements to the NSE are also placed below under the head announcements by R Power.  

 Though R Power is making significant Progress, the success of R Power depends on whether it can achieve the Targets slated for 2012 and 2013. If it can achieve these targets,  the waiting for Investors in it is well worth it. There are problems with regard to some land acquisitions  etc – for all Power generation companies, including R Power. Governments must sort out these problems. If this is also done, the future of R Power can be said to be very good.

Those with the staying Power to wait for long term gains – can invest in Reliance Power at current Prices.

FACT SHEET-2011 Status of projects under Construction
Key Features		Chitrangi				Rosa Phase II		Butibori
Capacity		600 MW (2 Units)				600 MW (2 units)		3960 MW (6 Units)
Location		Dist Shahjahanpur, Uttar Pradesh				MIDC, Dist Nagpur ,		Dist Singrauli,
Maharsahtra						Madhya Pradesh
Land acquisition		Completed				Land for power block acquired		Completed
Environment Clearance		Obtained				Obtained		Obtained
Financial Closure		Achieved				In advanced stages		Achieved
EPC		Reliance Infra				Reliance Infra		Reliance Infra
Case I		Cost plus tariff .				Off take		Captive /Case I
Fuel		Coal Supply from Western Coalfields (WCL)				Captive coal mines		Coal Supply from Central Coalfields (CCL)
Year of Commissioning		2012				2014		2012
Status of Ultra Mega Power Projects Under Construction
Key Features	Sasan				Krishnapatnam		Tilaiya
Capacity	3,960 MW				3,960 MW		3,960 MW
Location	Dist Singrauli,				Dist Nellore,		Dist Hazaribagh,
MP			AP                   Jharkhand
Land acquisition	Completed				Completed		Land for power plant acquired
Environment Clearance	Obtained				Obtained		Obtained
Financial Closure	Achieved				Achieved		In progress
Off take	Case II Bid				Case II Bid		Case II Bid
Fuel Supply	Captive coal mines				Imported coal		Captive coal mines
Year of Commissioning	2013				2013		2015
Status of Gas- Based Projects
Key features				Samalkot Expansion
Capacity				2,400 MW
Location				East Godavari district, Andhra Pradesh
Land Acquisition				Acquired
Environment Clearance				Obtained
Engineering Procurement & Construction (EPC)				Awarded
Off take				Case I
Gas Supply				Gas allocation by Govt. of India
Year of Commissioning				2011
Status of Hydro Electric Projects :Not given since years of commissioning are too far away ANNOUNCEMENTS BY RPOWER 08-11-2011          "TOTAL INCOME OF RS. 751 CRORE (US$ 153 MILLION) - AN INCREASE OF 47%". 08-11-2011          consolidated Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 48754.94 lacs for quarter ending on 30-SEP-2011 against Rs. 54180.39 lacs for the quarter ending on 30-JUN-2011. Net Profit / (Loss) of Rs. 23547.62 lacs for the quarter ending on 30-SEP-2011 against Rs. 19612.08 lacs for the quarter ending on 30-JUN-2011. 08-11-2011          standalone Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 1500.32 lacs for quarter ending on 30-SEP-2011 against Rs. 1372.48 lacs for the quarter ending on 30-JUN-2011. Net Profit / (Loss) of Rs. 10876.07 lacs for the quarter ending on 30-SEP-2011 against Rs. 6463.18 lacs for the quarter ending on 30-JUN-2011.        - 19-10-2011          "News Article regarding use of incremental coal from coal blocks allocated to the Company's Ultra Mega Power Projects". 17-10-2011          Reliance Power has redeemed the principal amount of US$ 299.90 Million corresponding to Rs. 1474.93 Crore due on the 4.928% Foreign Currency Convertible Bonds (FCCBs) on the due date for their redemption i.e. October 17, 2011. In view of the above redemption, it may be noted there has been no dilution in the Company's Equity Share Capital, which would have otherwise happened through the issue of 13,15,37,871 Equity shares of Rs. 10 each representing 4.48 % of the paid up share capital of the Company, to the Bondholders upon exercise of their rights to convert the Bonds into Equity shares of the Company. 04-10-2011          Reliance Power's Tilaiya Ultra Mega Power Project Registered For Carbon Credits by CDM Executive Board ". 03-10-2011          Reliance Power's 3,960 MW Tilaiya Ultra Mega Power Project registered for carbon credits valued at Rs.2,000 crore. 30-09-2011          Reliance Power's Sasan project receives RBI approval for $2.2 billion (Rs.11,000 crore) ECB financing 11-08-2011          "TOTAL INCOME OF RS. 689 CRORE (US$ 154 MILLION) - AN INCREASE OF 72%". 11-08-2011          consolidated Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 54180.39 lacs for quarter ending on 30-JUN-2011. Net Profit / (Loss) of Rs. 19612.08 lacs for the quarter ending on 30-JUN-2011. 11-08-2011          standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 1372.48 lacs for quarter ending on 30-JUN-2011. Net Profit / (Loss) of Rs. 6463.18 lacs for the quarter ending on 30-JUN-2011. 14-07-2011          (1) Reliance Power's 8000 mw of power projects in Madhya Pradesh are on schedule. (2) Reliance power is proceeding ahead with the Implementation of its projects as per schedule.     - 11-07-2011          Reliance Power’s wholly owned subsidiary, Coastal Andhra Power Limited has become eligible for Carbon Credits as per accreditation accorded by the Executive Board of the Clean Development Mechanism (CDM). 28-05-2011          1,30,228 Global Depository Receipts (GDRs) issued by Reliance Power Limited pursuant to the Composite Scheme of Arrangement, inter alia, between Reliance Natural Resources Limited (RNRL), the Company and others as approved by the Court of Judicature at Bombay on October 15, 2010, have been listed at the Euro MTF Market at Luxembourg since May 17, 2011. 27-05-2011          "TOTAL INCOME OF RS. 1892 CRORE (US$ 424 MILLION) FOR THE YEAR - AN INCREASE OF 124%". 27-05-2011          consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 105476.3 lacs for year ending on 31-MAR-2011 against Rs. 2072.36 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 76044.03 lacs for the year ending on 31-MAR-2011 against Rs. 68389.49 lacs for the year ending on 31-MAR-2010. 27-05-2011          standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 3637.85 lacs for year ending on 31-MAR-2011. Net Profit / (Loss) of Rs. 27454.62 lacs for the year ending on 31-MAR-2011 against Rs. 27323.31 lacs for the year ending on 31-MAR-2010. CONSOLIDATED RESULTS TABLE R power consol Q2 FY 2012 Q1FY2012 % DIF Q2FY2011 % DIF Net Sales 48,754.94 54,180.39 -10.01 16,869.44 189.01 Raw Materials 1,913.39 32,223.39 -94.06 9,972.07 -80.81 Traded goods 161.67 123.69 30.71 - Employees Cost 2,244.51 1,720.06 30.49 1,534.56 46.26 Depreciation 2,926.82 2,857.52 2.43 3,749.27 -21.94 Other Expenditure 32,432.07 1,622.66 2,543.45 1175.12 Total Expenditure 39,678.46 38,547.32 2.93 17,799.35 122.92 Profit from Operations 9,076.48 15,633.07 -41.94 -929.91 -1076.06 Other Income 26,314.23 14,743.06 78.49 34,371.59 -23.44 Interest 7,531.79 7,608.60 -1.01 4,990.22 50.93 Profit before tax 27,858.92 22,767.53 22.36 28,451.46 -2.08 Tax Expense 4,311.30 3,155.45 36.63 4,971.50 -13.28 Net Profit 23,547.62 19,612.08 20.07 23,479.96 0.29 Minority Interest - - -0.05 Consolidated Net Profit 23,547.62 19,612.08 20.07 23,480.01 0.29 Face Value (in Rs.) 10 10 0.00 10 0 Paid-up Equity 280,512.65 280,512.65 0.00 239,680.00 17.04 Basic EPS 0.84 0.7 20.00 0.98 -14.29 Public Shareholding (%) 19.58 19.58 0.00 15.22 28.65 *  *  *  E  N  D  *   *  *