The Hindu Business Line : Reliance Energy net up 314% in fourth quarter

A SUBSTANTIAL jump in electricity sales combined with a fall in interest paid has led to a 314 per cent increase in Reliance Energy Ltd's net profit in the fourth quarter ended March 31, 2004 at Rs 103.79 crore compared to Rs 25.07 crore last year.

Net sales jumped 35.5 per cent to Rs 876.56 crore (Rs 646.87 crore), led by a 39 per cent increase in electricity sales at Rs 650.49 crore (Rs 468.72 crore).

Mr Anil Ambani, Chairman and Managing Director, REL told prespersons, the increase in sales was primarily because of an increase in the number of billed consumers and reduction in commercial and technical losses.

The company's board has announced a final dividend of Rs 1.50 per share on equity shares for 2003-04.

It has already paid interim dividend of Rs 3 per share during the year.

Total expenses for the quarter were up 20.55 per cent to Rs 669.68 crore (Rs 227.17crore).

There was a substantial increase in cost of materials, staff costs and depreciation during the quarter.

" We have concluded a successful voluntary retirement scheme in Delhi where 4,500 employees accepted the package within seven days.

"This resulted in higher staff costs," Mr Ambani said.

The company has set up 77,000 new metres in Delhi while another one million new metres will be installed during the coming year, he said.

The company's earnings per share (on net profit) during the quarter jumped to Rs 6.64 (1.82); for the year, EPS stood at Rs 25.86 (Rs 8.85).

For the financial year ended March 31, 2004, REL reported a net profit (including deferred tax of Rs 7.14 crore) of Rs 374.12 crore, compared to Rs 121.87 crore last year.

Net sales stood at Rs 3,582.78 crore for the year compared to Rs 2,759.29 crore last year.

REL's shares closed 0.92 per cent higher on the BSE at Rs 776.50 per share compared to the previous close of Rs. 769.40 per share.

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