Reliance Power profit rises 21% to Rs 235 crore

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Reliance Power, an Anil Dhirubhai Ambani Group (ADAG) company, posted an increase of 21% in its consolidated net profit at Rs 234.8 crore for the quarter ended September 2010, against Rs 194.53 crore in the same quarter last year. In September this year, Reliance Natural Resources (RNRL (RNRL.NS : 41.85 0)), another ADAG company, received shareholders' nod to merge with Reliance Power. Post merger, Reliance Power has ownership of RNRL's share in four coal-bed methane blocks and an oil and gas block in Mizoram. During the quarter, the total income of the company increased about 108% at Rs 512.4 crore as compared to Rs 246.15 crore in the year-ago period
On a standalone basis, the net profit for the second quarter of 2010 declined to Rs 28.39 crore from Rs 70.53 crore in the year-ago period. The total income decreased to Rs 57.42 crore from Rs 101.20 crore in the corresponding quarter of last year.

The company has recently recieved a $10-billion contract to China's Shanghai Electric Corp (SEC) to provide power plant equipment of 32,000 MW capacity. It is the largest such orders of its kind. It also gave a contract worth Rs 3,375 crore to General Electric for supply of six gas turbines and three steam turbines for its 2,400 MW Samalkot project in Andhra Pradesh.

Along with major tie-ups to finance the projects, the private electricity generator has signed a memorandum of understanding (MoU) with Chinese banks for Rs 54,000 crore to finance its purchase of equipment from SEC. In another MoU with Export-Import Bank of the US, Reliance Power ensured funding worth Rs.22,500 crore over the next three years for its various projects.