Reliance Energy records 40% growth in profit at Rs237 crore

Reliance Energy records 40% growth in profit at Rs237 crore
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First Published: Wed, Apr 25 2007. 11 17 PM IST
Updated: Wed, Apr 25 2007. 11 17 PM IST
Mumbai: Reliance Energy Ltd (REL), the third-biggest power utility in India by revenue, on Wednesday announced a 40.09% growth in its consolidated net profit to Rs237.42 crore for the January-March quarter, led by a 51% growth in other income which stood at Rs275.42 crore.
The company’s total income grew at 54.32% to Rs1,889.67 crore.
The REL stock closed at Rs523.55, down 0.30% on the Bombay Stock Exchange, on a day when the 30-share Sensex gained 0.57%.
“The firm’s profits would have been higher but for the higher cost of electrical energy purchased and interest and finance charges. It has not been able to pass on the higher cost of energy to its consumers,” said Sameer Ranade, senior analyst at PINC Research, a domestic brokerage.
The company’s cost of energy purchase increased 69.56% to Rs428.52 during the quarter. The interest and finance charges of Reliance Energy is up 72.4% to Rs82.29 crore.
The company’s engineering, procurement and construction (EPC) division’s income grew 173% to Rs729.39 crore for building a 600MW plant at Yamunanagar in Haryana and a 1,200MW plant at Hissar in Himachal Pradesh.
REL’s net profit for the year ended 31 March 2007 registered a growth of 40.09% to Rs801.45 crore against Rs650.34 crore for the year ended 31 March 2006.
The total income of the company for the year ended 31 March 2007 was Rs6,575.25 crore, up 42.69%.
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First Published: Wed, Apr 25 2007. 11 17 PM IST