• Consolidated sales de-grew by 1% to Rs 1122.85 crore hit by lower generation at Rosa Power plant. The power generation of Rosa TPS was down by 8.8% to 1874.19 million units as the company under operate the TPS in April 2013 for non- payment from UPSEB. On the back of lower generation the sales of it was down by 2.7% to Rs 961 crore.
  
• Sales income for the quarter includes, fixed charges for Rosa Power Supply Company (RPSCL) Phase II recognized as per provisional tariff approved by UPERC and truing up of fixed charges amounting to Rs 15.39 crore for Phase I based on the tariff petition filed with UPERC in the previous financial year and adopting the same as truing up of fixed charges for Phase II.
  
• Operating profit margin expanded by 790 bps to 40% and thus operating profit was higher by 23% to Rs 448.79 crore. Sharp expansion in operating margin is largely on account of lower cost of fuel. This can be attributed to lower imported coal cost and improved share of domestic coal in the mix. Cost of fuel as a % to sales was lower by 760 bps to 56.3%. The employee cost was down by 50 bps to 1.1% and other expenses were up by 30 bps to 2%.
  
• Other income was lower by 28% to Rs 83.41 crore. The interest cost was higher by 22% to Rs 156.97 crore and depreciation was higher by 31% to Rs 89.56 crore on the back of commissioning of Butibori power project. Thus restricted the growth at PBT was 1% to Rs 285.67 crore.
  
• The taxation for the quarter was up by 4% to Rs 45.61 crore and thus the net profit eventually stood flat at Rs 240.06 crore.

Operating Capacities

The 1,200 MW Rosa Power Plant in UP operated at an availability of 100% and a plant load factor (PLF) of 72% and generated revenues of Rs 961 crore. The 40 MW Dhursar solar PV plant in Rajasthan generated a record 20 million units in this quarter which resulted in a net profit of ì 14 crore. The 45 MW wind project in Vashpet, Maharashtra has been commissioned in June 2013

Capacities under Construction

Construction activities are in progress for the second 660 MW unit of the 3960 MW Sasan UMPP and the project is on track to be commissioned ahead of bid schedule.

Construction work is in full swing at the 100 MW Concentrated Solar Power (CSP) project in Dhursar, Rajasthan and the project is expected to be commissioned in this year. The project also received approval for carbon credits and became the largest CSP project in the world to be registered under Clean Development Mechanism (CDM).

Management Comment

Announcing the results, J.P. Chalasani, the Chief Executive Officer of Reliance Power, said: "The 1,200 MW Rosa Power Project in Uttar Pradesh continued with its strong operating and financial performance. The regulatory approval for selling power on cost-plus basis from the 600 MW Butibori Power project would pave the way for substantially mitigating the sectoral challenges such as fuel and commercial risks for the plant and I am confident of improved performance once the off-take commences."

The stock hovers around Rs 66.85.