Anil Dhirubhai Ambani Group company Reliance Power reported better-than-expected numbers in third quarter of financial year 2012-13 with the consolidated net profit growing more than 30 percent year-on-year and 10.7 percent quarter-on-quarter to Rs 265.7 crore, sending shares 4 percent higher.
Earnings were boosted by higher plant load factors at Rosa unit and higher fuel cost. Full availability of fuel leading to stronger generation also contributed to higher revenues in the quarter.
Generation in the second quarter was weak due to planned outages and maintenance shutdown by the company.
Consolidated net sales jumped 3 times year-on-year and 35.7 percent quarter-on-quarter to Rs 1,464 crore in October-December quarter.
Analysts on an average were expecting net profit at Rs 249 crore on net sales of Rs 1,264 crore for the quarter.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 3.5 times YoY and 25 percent QoQ to Rs 493 crore in October-December quarter. EBITDA margin increased 300 basis points YoY to 33.7 percent, but that was down 275 basis points QoQ.
Other income declined to Rs 122 crore from Rs 217 crore year-on-year due to cash deployment in capex.
Rosa unit works on a cost-plus earnings model; therefore, higher fuel costs directly impact the topline and plant level return on equity positively.
The 1,200 MW rosa plant was operated at availability of plant load factors of 103 percent. Indicative PLF of 90 percent in Rosa (I&II) was expected to be healthy because of acute winter in the north and excellent availability of both units for Rosa (indicative at over 93 percent).
Reliance Power said Sasan ultra mega power project would be commissioned in few weeks and concentrated solar power (CSP) project in Rajasthan would be commissioned by first quarter of FY14. The company synchronised second unit of Butibori project in December quarter.
At 13:50 hours IST, shares rose 3.74 percent to Rs 92.90 on Bombay Stock Exchange.
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