Wednesday, April 30, 2008

REL profit up 31 per cent

Helped by higher revenues from electricity sales, Anil Ambani-controlled Reliance Energy has reported a 31 per cent increase in net profit at Rs 311 crore for the fourth quarter ended March 31 2008 against Rs 289 crore posted during the corresponding period last year.

Total income of the company stood at Rs 1977 crore for the quarter as against Rs 1,890 crore reported a year ago. “We have over Rs 7850 crore worth orders right now. We expect more orders to come from the infrastructure space,” said Lalit Jalan, Director, Reliance Energy. Income from selling electricity rose 36 per cent in the year ended March 31, 2008.

Chairman Anil Ambani has widened the scope of the company's business to include roads and airports as India spends $500 billion to improve infrastructure by 2012. The company will change its name as Reliance Infrastructure Ltd from Monda.

According to analysts, the increasing investment to the infrastructure space would provide more opportunities for companies like Reliance Energy. "Over $300 billion investments are expected in the infrastructure space. This will definitely create opportunities for companies like REL," said a Mumbai-based analyst working with broking firm Edelweiss Securities.

REL reported a net profit of Rs 1,085 crore for the financial year ended March 31, 2008 up 35 per cent as against Rs 801 crore posted a year ago. Total Income of Rs 7,501 crore, against Rs 6,575 crore in the previous year, with an increase of 14 per cent.

Reliance Energy has transferred all its power generation assets into a separate listed entity, Reliance Power, in which it owns 45 per cent stake. REL focuses more into the infrastructure space including road, port and railways. Reliance Energy shares were up 4.95 per cent at Rs 1426.10 at BSE on Monday.

The company will spend Rs 2000 crore to buyback shares at a maximum price of Rs 1,600. The company's aggregate revenues from energy sales during the financial year stood at Rs 4,920 crore up 36 per cent compared to Rs 3,611 crore in the previous year.

No comments:

Post a Comment