Reliance Energy Ld 19 January 2006 Reliance Energy Limited Registered Office: Reliance Energy Center,Santa Cruz (East),Mumbai 400 055. Website:www.rel.co.in Unaudited Financial Results for the Quarter Ended 31st December 2005 (Rs.in crore) Quarter Ended 9 Months Ended Year ended Sr.No. Particulars 31-12-2005 31-12-2004 31-12-2005 31-12-2004 31-03-2005 (Audited) 1 Net Sales of Electrical Energy 815.28 738.39 2,407.98 2,241.30 2,895.99 2 Income from EPC and Contracts 173.07 190.74 572.91 422.34 1,234.68 3 Other Income 149.28 205.62 402.54 338.97 461.88 1,137.63 1,134.75 3,383.43 3,002.61 4,592.55 4 Total Expenditure (a) Cost of Electrical Energy 264.18 281.52 834.84 808.29 1,004.10 purchased (b) Cost of Fuel 209.88 174.90 602.55 545.40 735.93 (c) Tax on Electricity 28.89 27.06 86.73 74.10 99.12 (d) Cost of Materials and Sub-contract charges (EPC and Contracts) 93.54 164.25 397.05 350.73 1,086.27 (e) Staff cost 65.46 60.30 193.71 174.45 232.53 (f) Other expenses and Provisions 147.06 161.46 322.98 310.74 383.70 5 Interest and Finance charges 46.74 35.58 144.15 90.90 134.82 6 Depreciation (See Note Nos.2 & 3) 90.72 84.06 259.50 248.85 346.44 7 Profit before Tax 191.16 145.62 541.92 399.15 569.64 8 Provision for Current Tax 35.52 4.02 75.00 17.04 25.50 9 Provision for Deferred Tax (10.20) 7.08 (17.55) 16.47 24.00 10 Provision for Fringe Benefit Tax 1.20 - 3.60 - - 11 Net Profit for the period 164.64 134.52 480.87 365.64 520.14 12 Prior Period Income / (Expense) - (0.30) - 0.15 (0.33) 13 Less: Tax Provision for earlier years (Including Deferred Tax) - - - (6.57) (0.48) 14 Net Profit 164.64 134.22 480.87 372.36 520.29 15 Paid up Equity Share Capital (Face 201.94 185.61 201.94 185.61 185.61 Value Rs. 10 per Share) 16 Reserves including Statutory 4,834.10 Reserves excluding Revaluation Reserves 17 Earnings per share (On Net Profit) (* not annualised) - Basic (Rs.) 8.16 * 7.25 * 24.30 * 19.73 * 28.06 - Diluted(Rs.) 7.75 * 6.57 * 23.14 * 17.87 * 26.19 18 Aggregate of Non-Promoter Share Holding - - No.of Shares 98,984,288 92,514,064 98,984,288 92,514,064 92,514,064 -Percentage of Share holding 49.03 49.85 49.03 49.85 49.85 Interim dividend for the period (exclusive of dividend tax) 20.41 23.94 61.23 Segment-wise Revenue,Results and Capital Employed (Rs.in crore) Quarter Ended 9 Months Ended Year ended Sr.No. Particulars 31-12-2005 31-12-2004 31-12-2005 31-12-2004 31-03-2005 (Audited) 1.Segment Revenue (Net Sales/Income) - Electrical Energy 837.39 745.03 2,448.62 2,263.43 2,927.36 - EPC and Contracts 175.14 191.77 583.51 425.96 1,240.95 - Others 0.60 1.15 1.49 2.08 3.58 Gross Turnover 1,013.13 937.95 3,033.62 2,691.47 4,171.89 Less:Inter Segment Revenue 0.15 0.09 0.15 0.56 0.71 Net Turnover 1,012.98 937.86 3,033.47 2,690.91 4,171.18 2.Segment Results Profit before tax and interest from each segment : - Electrical Energy 93.61 50.04 262.23 235.14 281.69 - EPC and Contracts 51.26 1.86 109.64 14.52 75.85 - Others 0.29 0.66 0.63 0.69 1.32 Total Segment Results 145.16 52.56 372.50 250.35 358.86 - Interest Expense (46.74) (35.58) (144.15) (90.90) (134.82) - Interest Income 120.40 66.99 323.71 170.75 275.30 - Other un-allocable Income net off expenditure (27.66) 61.65 (10.14) 68.95 70.30 Profit before Tax 191.16 145.62 541.92 399.15 569.64 3.Capital Employed - Electrical Energy 3,004.65 3,222.49 3,004.65 3,222.49 2,993.32 - EPC and Contracts 339.55 304.41 339.55 304.41 199.18 - Others (0.64) (0.06) (0.64) (0.06) 0.31 Total Segment Capital Employed 3,343.56 3,526.84 3,343.56 3,526.84 3,192.81 Notes: 1. a. In the matter of standby charges, Maharashtra Electricity Regulatory Commission (MERC) had passed an order dated 31st May, 2004 as under: i. The total liability for the financial years 1998 - 99 to 2003-04 was determined at Rs. 515.60 crore which had been debited to the Profit & Loss account up to 31st March 2005. ii. The Tata Power Company Limited (TPC) to refund an amount of Rs. 321.13 crore (net of interest of Rs. 1.17 crore) to the Company for the said period plus interest at 10% per annum commencing from 1st April 2004 till the date of payment. As an interim order, Hon'ble High Court of Bombay granted stay of payment by TPC, but directed TPC to provide a Bank Guarantee of Rs.313.93 crore in favour of the Hon'ble High Court of Bombay. b. The Hon'ble High Court of Bombay has disposed off both the petitions, the petition filed by TPC and the petition filed by the Company, by holding that the issues should be adjudicated within four months of the order of the Hon'ble Bombay High Court by the Appellate Tribunal, in the interregnum, the parties to continue to pay in terms of the interim order subject to adjustments on adjudication. c. The Company's Special Leave Petitions against the interim and final orders of the Hon'ble High Court of Bombay have been admitted by the Hon'ble Supreme Court and The Tata Power Company Limited has also filed a Special Leave Petition before the Supreme Court challenging the final order passed by the Hon'ble Bombay High Court. The Hon'ble Supreme Court has since disposed of the Special Leave Petitions with directions to The Tata Power Company Limited to file an appeal before the Appellate Tribunal. The Tata Power Company Limited has since filed an appeal which is pending before the Appellate Tribunal. 2. During the quarter ended 30th September, 2005, the Company had changed the rates of depreciation, from those prescribed vide Ministry of Power Notification of 1994 to the rates prescribed in Schedule XIV to the Companies Act, 1956 under the "Straight line method" to reflect the realistic useful life of the assets. Consequently, the depreciation charged to the profit and loss account is higher in the quarter ended 31st December, 2005 by Rs.8.29 crore (Rs.11.86 crore for nine months) with the corresponding decrease in profit before taxation for the quarter. 3. The Company had revalued its Plant & Machinery located at Dahanu during the financial year 2003-04. The depreciation figures shown in unaudited financial results are net off effect of revaluation since corresponding amount is withdrawn from the General Reserve 4. Figures of the previous year / period have been regrouped / reclassified wherever considered necessary. 5. The Company, during the quarter ended 31st December, 2005, received 5 investor complaints and all of them were resolved. There were no complaints pending at the beginning of the quarter. 6. The statutory auditors of the Company have carried out the "Limited Review" of the results for the quarter ended 31st December, 2005 as per the listing agreements entered into with the stock exchanges in India. 7. After review by the Audit Committee, the Board of Directors of the Company took the above results on record at their Meeting held on 18th January, 2006. 8. There has not been any significant change in or any special factor influencing the business activities of the Company during the quarter ended 31st December, 2005, except as specifically mentioned in the above Notes. For and on behalf of the Board of Directors Place: Mumbai Anil D. Ambani Date: 18th January, 2006 Chairman & Managing Director This information is provided by RNS The company news service from the London Stock Exchange