RIL

Despite a 64% (YoY) jump in total operating costs, led by a 66% rise in power and fuel cost, a 31% drop in other income and a 64% jump in interest outgo at Rs.258 crore, Reliance Power ended the quarter with a consolidated net profit at Rs.244 crore, up 2%. This was mainly on the back of a 56% increase in consolidated net revenue at Rs.1753 crore. Operating profit was up 41% at Rs.635 crore but EBITDA margin declined by a sharp 380 bps to 36.2%.

Reliance Power as at 30th June 2014, has total operating capacity at 4525 MW and four of the five units are fully operational as Sasan. 3300 MW capacity (5X660 MW) capacity has been installed at the Sasan Ultra Mega Power Project located in Madhya Pradesh. The fifth and final unit is expected to go on stream in current fiscal.  The good news for the company was that late last week, it received environmental clearance for its 5- million-tonne-a-year coal mine at Chhatrasal, Madhya Pradesh, meant for its Sasan unit. This clearance has come after eight years of allocation in 2006. The aggregate coal reserves of these mines are around 700 million tonne (mt) with a production level of 25 mt a year. Once this mine starts, power and fuel cost of the company is expected to come down substantially.