Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Reliance Power
Q 1 FY12: good operating performance
Rs5.42bn of sales and Rs1.96bn of PAT in Q1 FY12
In Q1 FY12, Reliance Power reported Rs5.42bn of operating revenue (up 289%
YoY) and Rs1.47bn of other income (decline of 49% YoY). Reported PAT is
Rs1.96bn (flat YoY). The results are in line with UBS-e and significantly above
consensus numbers. However, since Reliance Power only has 600MW (vs. project
portfolio of 35,000MW) currently operational, Q1 results are not that significant.
Rosa Phase I (600MW) has delivered solid operational performance
Utilisation at the only operational plant of Reliance Power (Rosa Phase I, 600MW)
has been very good in Q1 FY12. The plant operated at a plant load factor (PLF) of
91%, generating 1,190 MU (vs. 455 MU in Q1 FY11), and net profit for the plant
was Rs1.09bn (vs. Rs60m in Q1 FY11). Annualised RoE at this plant is more than
30%—this is a significant achievement as it is a regulated return-based (cost plus)
plant. This is primarily due to savings realised on account of a better heat rate at
the plant (it leads to lower coal consumption than stipulated).
Coal production to start in 2012 at Sasan coal mines
According to the company: a) construction activities are progressing as per
schedule for the 3,960 MW Sasan ultra mega power project (UMPP) and the first
unit is expected to be commissioned in 2012; and b) development of the Sasan coal
mines is on track to produce coal ahead of the commissioning of the UMPP.
Valuation: price target of Rs120 is based on DCF
We base our price target on DCF. We believe key issues include: 1) clarity on gas
availability; 2) financial closure for projects; and 3) new project wins.
Reliance Power
Reliance Power is a subsidiary of Reliance-ADA Group (one of India's largest
business groups) in the power generation sector. With a project pipeline of
28,200MW, Reliance Power targets to become one of the largest private sector
generation companies in India by 2017. The projects are well diversified with a
coal:gas:hydro mix of 52:36:12, and plants in six states across 13 locations.
Reliance Power expects to start power generation in FY11.
Statement of Risk
We believe the key risks are fuel availability; equipment availability and
performance; funding costs; and payment security, as well as off-take related
and project execution risks.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
UBS Investment Research
Reliance Power
Q 1 FY12: good operating performance
Rs5.42bn of sales and Rs1.96bn of PAT in Q1 FY12
In Q1 FY12, Reliance Power reported Rs5.42bn of operating revenue (up 289%
YoY) and Rs1.47bn of other income (decline of 49% YoY). Reported PAT is
Rs1.96bn (flat YoY). The results are in line with UBS-e and significantly above
consensus numbers. However, since Reliance Power only has 600MW (vs. project
portfolio of 35,000MW) currently operational, Q1 results are not that significant.
Rosa Phase I (600MW) has delivered solid operational performance
Utilisation at the only operational plant of Reliance Power (Rosa Phase I, 600MW)
has been very good in Q1 FY12. The plant operated at a plant load factor (PLF) of
91%, generating 1,190 MU (vs. 455 MU in Q1 FY11), and net profit for the plant
was Rs1.09bn (vs. Rs60m in Q1 FY11). Annualised RoE at this plant is more than
30%—this is a significant achievement as it is a regulated return-based (cost plus)
plant. This is primarily due to savings realised on account of a better heat rate at
the plant (it leads to lower coal consumption than stipulated).
Coal production to start in 2012 at Sasan coal mines
According to the company: a) construction activities are progressing as per
schedule for the 3,960 MW Sasan ultra mega power project (UMPP) and the first
unit is expected to be commissioned in 2012; and b) development of the Sasan coal
mines is on track to produce coal ahead of the commissioning of the UMPP.
Valuation: price target of Rs120 is based on DCF
We base our price target on DCF. We believe key issues include: 1) clarity on gas
availability; 2) financial closure for projects; and 3) new project wins.
Reliance Power
Reliance Power is a subsidiary of Reliance-ADA Group (one of India's largest
business groups) in the power generation sector. With a project pipeline of
28,200MW, Reliance Power targets to become one of the largest private sector
generation companies in India by 2017. The projects are well diversified with a
coal:gas:hydro mix of 52:36:12, and plants in six states across 13 locations.
Reliance Power expects to start power generation in FY11.
Statement of Risk
We believe the key risks are fuel availability; equipment availability and
performance; funding costs; and payment security, as well as off-take related
and project execution risks.
No comments:
Post a Comment