The Hindu Business Line : Reliance Energy net profit up 34% at Rs 250 cr

Mumbai, Oct. 17 Reliance Energy Ltd, a Anil Ambani Group company, reported 34.19 per cent rise in the net profits for the second quarter ended September 30, 2007 compared to a year ago. Net profits went up from Rs 186.3 crore last year to Rs 250 crore.

The improvement was due to a change in accounting policy for foreign exchange derivatives instruments contracts.

Such contracts are now being revalued at fair value at the end of the reporting period. The company has not spelt out the basis followed earlier. For the September 2007 quarter, the change resulted in a gain of Rs 49.61 crore while for the six months as a whole the company reported a charge of Rs 33.06 crore.

The net sales for quarter increased by 9.52 per cent to Rs 1541.7 crore (Rs 1407.6 crore).

The company had net sales of Rs 1259.4 crore from selling electricity and Rs 282.2 crore and from EPC contracts for the quarter.

For the half-year period, the company purchased 2,633 million units of electrical energy from external sources, which is higher by 14 per cent compared to the off-take in the corresponding previous period.

However, the cost of energy purchased increased by 104 per cent to Rs 1,320 crore owing to higher per unit cost of Rs 5.0 for the period against Rs 2.8 in the previous period.

RNRL net up to Rs 19.16 crore

Meanwhile, Reliance Natural Resources Ltd, engaged in sourcing, supply and transportation of gas, coal and liquid fuels, reported a 176 per cent rise in net profits for the quarter ended September 30, 2007. The company recorded a net profit of Rs 19.16 crore against Rs 6.94 crore the same time last year.

Receipts by way of ‘Other Income’ overshadowed net sales for the quarter with the former registering Rs 49.60 crore as against a net sales of Rs 11.72 crore.

Other income registered a 345 per cent rise primarily due to earnings on foreign exchange investment. For the quarter other income rose to Rs 49.59 crore from Rs 11.12 crore achieved in the year ago quarter.

The net sales for the quarter has taken a dip to Rs 11.71 crore from Rs 12.46 crore in the year ago quarter.

At close of the market on Wednesday, REL scrip traded at Rs 1762.40 losing 7.46 per cent over the previous day close of Rs 1904.40.

RNRL shares were traded at Rs 96.90, a gain of 1.20 per cent over previous day closing of Rs 95.75