The Hindu Business Line : Reliance Energy Q1 net up 42 pc

RELIANCE Energy Ltd (REL) posted a net profit at Rs 156.63 crore for the first quarter of 2005-06, registering a 42-per cent growth over Rs 110.01 crore in the first quarter last year.

The surge in profits came even as the utility company's income from its core activity - sale of electricity - fell during the period to Rs 783.24 crore from Rs 799.2 crore.

The bulk of profits seems to have come from the Rs 58-crore rise in other income, mainly interest income, which stood at Rs 134.76 crore against Rs 76.92 crore last year. There was a rise in income from EPC and contracts at Rs 166.44 crore (Rs 143.58 crore). Thus, the total income for the quarter stood at Rs 1,084 crore, up 6 per cent from Rs 1,020 crore.

The cost of electricity purchased during the period was down at Rs 275.31 crore from Rs 293.55 crore, while there was a rise in the company's fuel cost for power produced at Rs 204.69 crore from Rs 184.89 crore. Interest and finance charges were up at Rs 43.32 crore from Rs 30.63 crore.

The company has proposed a 12-per cent dividend for the first quarter, amounting to a pay-out of Rs 27 crore. During the period, the equity capital of REL increased to Rs 195.36 crore, upon the conversion of equity warrants allotted to the Reliance group, from Rs 185.61 crore at the end of the last financial year. During the period, REL purchased 1,067 million units of electrical energy from external sources, which is higher by 13 per cent compared to the off-take in the corresponding previous period.

The cost of energy purchased decreased 6 per cent to Rs 275 crore, owing to lower per unit cost. REL shares dipped Rs 6.15 to close at Rs 650.40

The company ranks third among Indian private sector companies in terms of net worth that stood at Rs 6,514 crore as on June 30, 2005.

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Reliance Energy Q1 net up 42 pc