The Hindu Business Line : Reliance Energy Q4 net profit rises 42.5 pc

A SUBSTANTIAL increase in income from its EPC contracts business and higher other income has helped Reliance Energy report a 42.5 per cent jump in net profit for the quarter ended March 2005.

Net profit for the fourth quarter stood at Rs 147.93 crore (Rs 103.79 crore). Total income jumped 81 per cent to Rs 1,589.94 crore (Rs 876.56 crore) or Rs 7.97 a share (Rs 6.64 a share).

Most of the increase in income was a result of a 369 per cent jump in income from the EPC contract business to Rs 812.34 crore (Rs 173.13 crore).

Total income also included income from sale of electricity at Rs 654.69 crore (Rs 650.49 crore), while other income more than doubled to Rs 122.91 crore (Rs 52.94 crore).

The company has announced a final dividend of Rs 1.40 a share.

When combined with interim dividend, REL has paid shareholders a total dividend of Rs 4.70 a share in 2004-05, a news release said.

Total expenditure for the quarter under review went up to Rs 1,277.94 crore (Rs 668.68 crore); a large part of the increase was towards cost of material and sub-contract.

Interest charges stood at Rs 43.92 crore (Rs 19.82 crore) while depreciation accounted for Rs 97.59 crore (Rs 73.92 crore).

Profit before tax went up to Rs 170.49 crore (Rs 114.14 crore), while tax provisions were at Rs 8.46 crore.

For the fiscal ended March 2005, REL reported a 42 per cent increase in net profit to Rs 520.29 crore (Rs 374.12 crore) while total income stood at Rs 4,592.55 crore (Rs 3,582.70 crore).

The company's subsidiary, Reliance Energy Generation Ltd, signed a State Support Agreement with the Uttar Pradesh Government for its proposed 3,740 MW gas-based Dadri power project.

According to Ms Leena Srivastav, Independent Director on the REL board, although the board of directors did not discuss gas supplies to the Dadri project at its meeting today, REL has revised the time schedule for completion of the project.

She refused to comment on the revised schedule.

The Dadri project was scheduled for completion in 2008-09. REL had floated a global tender for gas supplies to the project.

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