Reliance Power's Q1 Net flat due to drop in coal prices
Anil Ambani-led Reliance Power on Tuesday said its consolidated net profit remained flat at Rs 240 crore in the June quarter, mainly due to reduction in coal prices which resulted in a decline in revenue as merchant power remained more or less unchanged.
The company had reported a profit of Rs 239.5 crore in the corresponding quarter of previous financial year.
Total income declined to Rs 1,206 crore in the first quarter ended June 30 as against Rs 1,252 crore in the same period last fiscal.
"The total income has seen a decline mainly on account of fall in domestic and international coal prices. In the cost pass-through model, if the coal prices decline, the topline will surely be impacted," the company's chief executive officer, JP Chalasani, told reporters here.
However, the company has been able to maintain its performance during the quarter with its 1,200 mw Rosa power plant in Uttar Pradesh operating at 100% availability and 72% plant load factor (PLF), he said.
Besides, the 40 mw Dhursar solar plant in Rajasthan operated at 23% PLF, which is a good achievement, he said, adding, "we have been able to maintain the performance of the 600 mw Butibori plant in Maharashtra as well."
Reliance Power, having a generation capacity of 2,545 mw, said construction work is in progress for the second 660 mw unit of the 3,960 mw Sasan ultra mega power project and the plant is on track to start ahead of the bid schedule. The MP- based project is expected to be commissioned by June next.
Chalsani said the regulatory approval for selling power on cost-plus basis from 600 mw Butibori project would pave the way for substantially mitigating the sectoral challenges such as fuel and commercial risks for the plant.
"So far, we have been doing short-term trading from this Butibori plant. Once the off-take commences (on cost pass through) the performance will further improve." The company recently commissioned its 45 mw wind project in Vashpet, Maharashtra.
Chalsani said construction work at its new 100 mw solar power project at Dhursar, which is expected to be commissioned this year, is in progress.