RELIANCE POWER Announces Quarterly Results (3QFY19); Net Profit Down 32.8%

Fri, 25 Jan

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

RELIANCE POWER Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	24,947	22,831	21,003	-8.0%	-15.8%
Other income	Rs m	957	950	511	-46.2%	-46.6%
Turnover	Rs m	25,903	23,781	21,514	-9.5%	-16.9%
Expenses	Rs m	12,988	11,664	9,740	-16.5%	-25.0%
Gross profit	Rs m	11,958	11,167	11,264	0.9%	-5.8%
Depreciation	Rs m	1,882	1,993	2,029	1.8%	7.8%
Interest	Rs m	7,485	6,957	7,399	6.3%	-1.2%
Profit before tax	Rs m	3,548	3,166	2,347	-25.9%	-33.9%
Tax	Rs m	744	647	464	-28.3%	-37.7%
Profit after tax	Rs m	2,803	2,519	1,883	-25.3%	-32.8%
Gross profit margin	%	47.9	48.9	53.6
Effective tax rate	%	21.0	20.4	19.8
Net profit margin	%	10.8	10.6	8.8

Year-on-Year Performance:

• The company's operating income during the quarter fell 15.8% on a year-on-year (YoY) basis. The expenses were down by 25.0% YoY during the same period.
• The company's operating profit declined by 5.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 53.6% in 3QFY19 as against 47.9% in 3QFY18.
• Depreciation charges increased by 7.8% and finance costs declined by 1.2% YoY, respectively.
• Other income declined by 46.6% YoY during the quarter.
• Net profit for the quarter declined by 32.8% YoY. Net profit margins during the quarter declined from 10.8% in 3QFY18 to 8.8% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 8.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 16.5% QoQ during the same period.
• The company's operating profit increased by 0.9% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 53.6% in 3QFY19 as against 48.9% in 2QFY18.
• Net profit for the quarter declined by 25.3% QoQ, while net profit margins declined from 10.6% in 2QFY18 to 8.8% in 3QFY19.

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 47.1 to Rs 29.0, registering a Loss of Rs 18.2 or around 38.5%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 1,900.3 (down 0.1%). Over the last one year it has moved down from 2,347.5 to 1,900.3, a gain of 447 points (down 19.1%).

Overall, the S&P BSE SENSEX is up 0.7% over the year.

Current Valuations

At the current price of Rs 29.0, the price to earnings (P/E) ratio of RELIANCE POWER stands at 10.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.4 times.