Mumbai: Anil Ambani-led Reliance Power Ltd on Friday reported a lower-than-expected net profit for the quarter ended 30 September, as net sales fell and finance costs rose.
Consolidated net profit for the quarter fell 6.2% to Rs272.07 crore, from Rs290.19 crore a year earlier, Reliance Power said in a statement.
Net sales fell 10.6% to Rs2,082.34 crore from Rs2,329.85 crore a year earlier.
Both net profit and net sales fell short of Street estimates. Five analysts polled by Bloomberg had expected Reliance Power to report consolidated net profit of Rs301.20 crore, while six analysts had expected net sales of Rs2,556 crore.
Plant load factor (PLF) at the company’s 3,960 megawatt (MW) Sasan ultra mega power project (UMPP) was down to 70% in the September quarter, compared with 100% in the month of April and 93% in the quarter ended 30 April.
Total expenses fell 12.6% to Rs1,474.71 crore in the second quarter from Rs1,687.76 crore a year earlier. Finance costs rose about 14.4% to Rs693.64 crore from Rs606.56 crore last year.
The company runs power projects based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 MW.
The results were announced after market hours on Friday. Reliance Power’s shares closed down 2.59% at Rs43.25 on BSE on Friday.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.