Reliance Power Q1 net may fall 4.8% at Rs 228 cr: Poll

Reliance Power is expected to report a degrowth of 4.8 percent year-on-year and 14.3 percent quarter-on-quarter in consolidated net profit at Rs 228 crore for the quarter ended June 2013, according to a CNBC-TV18 poll.

Analysts expect net sales to grow 7.9 percent Y-o-Y (down 1.8 percent sequentially) to Rs 1,225 crore in first quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going up by 33 percent Y-o-Y (up 4.8 percent Q-o-Q) to Rs 485 crore while EBITDA margin may increase 750 bps Y-o-Y (up 250 bps sequentially) to 39.6 percent during the quarter. Analysts feel the quarter-on-quarter numbers will be important as several capacities have got commissioned during the last one year. Reliance Power has been showing steady execution with the Rosa plant being fully operational, Butibori plant being synchronized and commencement of coal production and the commissioning date (CoD) of 1st unit at Sasan UMPP. Investors should watch out for: 1) Update about appeal against CERC order directing to re-conduct testing of Sasan unit at full capacity; 2) Fuel supply at Rosa & clarity on fuel supply at Butibori; 3) Mining cost at Sasan; and 4) Update on Tilaiya mine land acquisition.