RELIANCE POWER Announces Quarterly Results (1QFY19); Net Profit Up 2.8%

Thu, 26 Jul

RELIANCE POWER has announced its results for the quarter ended June 2018. Here is a detailed performance review of the same:

RELIANCE POWER Quarterly Financials

No. of Mths Qtr. Ending		3 Jun-17*	3 Mar-18*	3 Jun-18*	QoQ Change	YoY Change
Net Sales	Rs m	26,352	24,278	22,848	-5.9%	-13.3%
Other income	Rs m	1,171	272	858	215.5%	-26.8%
Turnover	Rs m	27,523	24,549	23,706	-3.4%	-13.9%
Expenses	Rs m	14,714	13,439	11,959	-11.0%	-18.7%
Gross profit	Rs m	11,639	10,295	10,889	5.8%	-6.4%
Depreciation	Rs m	1,880	1,943	2,010	3.5%	6.9%
Interest	Rs m	7,660	6,900	6,767	-1.9%	-11.7%
Profit before tax	Rs m	3,269	1,724	2,970	72.3%	-9.2%
Tax	Rs m	961	781	597	-23.6%	-37.9%
Profit after tax	Rs m	2,309	944	2,373	151.5%	2.8%
Gross profit margin	%	44.2	42.4	47.7
Effective tax rate	%	29.4	45.3	20.1
Net profit margin	%	8.4	3.8	10.0

Year-on-Year Performance:

• The company's operating income during the quarter fell 13.3% on a year-on-year (YoY) basis. The expenses were down by 18.7% YoY during the same period.
• The company's operating profit declined by 6.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 47.7% in 1QFY19 as against 44.2% in 1QFY18.
• Depreciation charges and finance costs increased by 6.9% YoY and 11.7% YoY, respectively.
• Other income declined by 26.8% YoY during the quarter.
• Net profit for the quarter increased by 2.8% YoY. Net profit margins during the quarter increased from 8.4% in 1QFY18 to 10.0% in 1QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 5.9% on a quarter-on-quarter (QoQ) basis. The expenses were down by 11.0% QoQ during the same period.
• The company's operating profit increased by 5.8% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 47.7% in 1QFY19 as against 42.4% in 4QFY18.
• Net profit for the quarter increased by 151.5% QoQ, while net profit margins increased from 3.8% in 4QFY18 to 10.0% in 1QFY19.

To see how RELIANCE POWER has performed over the last eight quarters, please visit here.

RELIANCE POWER Share Price Performance

Over the last one year, RELIANCE POWER share price has moved up from Rs 44.4 to Rs 32.0, registering a Loss of Rs 12.5 or around 28.0%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,924.7 (up 0.4%). Over the last one year it has moved down from 2,302.6 to 1,924.7, a gain of 378 points (down 16.4%).

Overall, the S&P BSE SENSEX is up 0.4% over the year.

Current Valuations

At the current price of Rs 32.0, the price to earnings (P/E) ratio of RELIANCE POWER stands at 10.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.4 times.