Monday, November 29, 1999

Mixed bag of earnings for ADAG companies

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Three companies of the Anil Dhirubhai Ambani Group — Reliance Infrastructure, Reliance Power and Reliance Natural Resources Ltd — which had earlier deferred announcement of their results came out with the numbers on Saturday. Analysts believe that the three companies had postponed declaration of results to avoid a possible hammering of their stocks following the Supreme Court judgement of May 7, which was seen as a setback for these companies. Now that the earnings numbers are public, the market, it is felt, would approach the stocks based on their individual merit.Reliance Infrastructure said its net profit for the fourth quarter of FY2010 dipped 27% to Rs 251.09 crore, compared to Rs 346.17 crore in Q4 of FY2009. The company attributed the fall in profits to the rising cost of materials. Its total operating income, however, rose 9% from Rs 2,409.24 in Q4 FY2009 to Rs 2,643.87 crore in Q4 FY 2010. The company declared an interim dividend of 7.10%.Meanwhile, Reliance Natural Resources (RNRL) reported a 27% growth in consolidated net profit at Rs 90.75 crore for the year ended March 2010. The company had a consolidated net profit of Rs 71.54 crore in the previous fiscal. Total operating income rose to Rs 298.38 crore in the year ended March 2010, up 10.5% from Rs 270.01 crore in the same period a year ago. On a standalone basis, the company posted a net profit of Rs 73.32 crore for 2009-10, up nearly 5% over the year-ago period.Yet another ADAG group company Reliance Power, on a consolidated basis, posted net profit after minority interest of Rs 683.90 crore for the year ended March 31, 2010 as compared to Rs 244.50 crore for FY 2009. Total income rose from Rs 360.38 crore for the year ended March 31, 2009 to Rs 843.38 crore in FY 2010.Shares of all three ADAG companies had taken a hit following the Supreme Court judgement which said the government had the final authority to price natural gas in the country. Shares of these companies which had partially recovered last week again fell on Friday, when the Sensex plunged 1.57%. Reliance Infrastructure fell marginally to Rs 1,025.60 and Reliance Power was down 1.13% to Rs 144.55, while RNRL fell the most to close at Rs 47.40, down 4.34%.Reliance Infrastructure, which has locked horns with Tata Power Company (TPC) over power distribution in Mumbai, said aggregate revenues from energy sales during the financial year ended March 31, 2010, stood at Rs 6,368 crore against Rs 7,183 crore in FY2009. The company alleges that TPC is selling 100 MW outside Mumbai to AP discom and the Tamil Nadu Electricity Board and is making 'supernormal profits'. The Maharashtra government has asked TPC to continue to supply 358 mw to Reliance Infrastructure till June 30, despite having no agreement between the two companies.

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