RIL

The company posted a set of very flat numbers for Q4FY13. Its consolidated net profit was at Rs.266 crore v/s Rs.265.70 crore for Q4FY12 on a sequential basis. Net income was down 14% (YoY)  and 16% (QoQ) at Rs.1248 crore. There was a major improvement in the EBIDTA margins, up from 33.6% to 37.10% (QoQ). EBIDTA was up by a whopping 158% at Rs.463 crore. This, despite a declining topline was on account of lower operating costs, which was at 69% of the net sales in Q4 compared to 71% in Q3. The major contributor to the lower costs was power and fuel, which was down 25% (QoQ). There was a tax write back of Rs.31 crore and that helped the net profit. Interest outgo was at Rs.170 crore,

For FY13, consolidated net sales was at Rs.4928 crore, up 144%. Net profit for the year was at Rs.1011 crore, up 17%. Interest outgo for the year was at Rs.585 crore, which ate away 12% of the topline. The total debt as at 31^st March 2013 was at Rs.26,752 crore. In March 2013, the company’s 3960 MW Sasan UMPP saw the synchronization of its first 660 MW. It also started coal production at its 20 million tonnes per annum Moher mines for the Sasan project. The 45 MW wind project in Maharashtra is in the final stages of implementation and the project is expected to be commissioned shortly.  Its 2400 MW Samalkot plant in Andhra Pradesh is ready but is not able to operate due to local gas shortage. CERC has given approval to Adani and Tata Power to raise tariff on its electricity but no such approval has been given to Reliance Power.  Thus clarity on gas and coal pricing and Reliance being allowed to raise tariff will be the two next triggers for the stock.