Reliance Power Q1 PAT may rise 7.4% at Rs 244.3 cr: Emkay

Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the power sector. The brokerage house expects Reliance Power to report a 3.2 percent degrowth quarter-on-quarter (growth of 7.4 percent year-on-year) in net profit at Rs 244.3 crore.

Revenues are expected to increase by 3.9 percent Q-o-Q (up 14.2 percent Y-o-Y) to Rs 1283.5 crore, according to Emkay Equity Advisory. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 15.2 percent Q-o-Q (up 47.1 percent Y-o-Y) to Rs 519.1 crore. EBITDA margin or operating profit margin is likely to be at 40.4 percent in June quarter as against 36.5 percent in March quarter and 31.4 percent in a year ago period. Emkay Equity Advisory on Reliance Power Expect PAT of Rs2.44 billion, up 6.5 percent Y-o-Y, but down 3 percent Q-o-Q mainly driven by Rosa PAF (assumed at 90 percent vs 81 percent in 1Q13 and 106 percent in 4Q13), Rosa PLF for 1Q14 was 71.7 percent. Butibori declared COD for 300MW in May and started supplying power to buyers including RInfra. We booked the corresponding expenses for Butibori for two months. 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.