R-Power Q1 net profit grows marginally
Net profit rose less than 1% to `240 crore from a year earlier, missing analysts’ estimates
Mumbai:Reliance Power Ltd (R-Power), the power generation arm of the Anil Ambani-led Reliance group, said fiscal first quarter profit rose less than 1% to ₹ 240 crore from a year earlier, missing analysts’ estimates.
Net sales fell 1.14% to ₹ 1,122.85 crore in the three months ended 30 June. A Bloomberg survey of earnings estimates of nine analysts had expected R-Power’s net sales at ₹ 1,207.6 crore, and profit at ₹ 228 crore.
The company, in a press statement, did not give reasons for the drop in sales and the marginal profit growth.
R-Power chief executive J.P. Chalasani said the 1,200 MW Rosa power project in Uttar Pradesh “continued its strong operating and financial performance."
“The regulatory approval for selling power on cost-plus basis from the 600 MW Butibori Power project would pave way for substantially mitigating the sectoral challenges such as fuel and commercial risks for the plant and I am confident of improved performance once the off-take commences," Chalasani said.
The company’s primary power generating asset in Rosa generated a revenue of ₹ 961 crore, operating at 100% capacity, the company said in a statement. The company’s 40 MW Dhursar solar PV plant in Rajasthan generated a record 20 million units in the quarter, resulting in a net profit of ₹ 14 crore.
At 2.38pm, shares of R-Power fell 2.34% to ₹ 73.15 on BSE, while the stock exchange’s benchmark Sensex fell 1.13% to 19371.77 points.
R-Power has sued HT Media Ltd, publisher of Mint, in the Bombay high court over a 12 May 2010 front-page story in Mint that it disputed. HT Media is contesting the case.
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