Reliance Power Q3 net zooms over 30% to Rs 266 crore

MUMBAI: Reliance Power's numbers for the latest December quarter were ahead of the expectations. Its revenues grew by 220% year on year and 36% quarter on quarter to Rs 1430 crore due to the commissioning of its 600 MW Rosa II plant. Also the profitability was higher due to lower operational cost. Its operating profit grew by 230% year on year to Rs 443 crore. As a result of this, the company's stock closed 5.5% higher at Rs 95.

The highlight of the result was 103% plant availability factor for its existing 1200 MW. This implies that the company has high fuel supply. The company has mentioned that it will commission the first 660 MW units its 3960 MW Sasan Project in the next few weeks.

While Reliance has been doing well operationally, investors should watch out for two things. First, development of its Chitrangi project, which is likely to receive coal from Sasan coal mines,which is currently under the review of court. The second is the availability and pricing of gas for its Samalkot project. Both Chitrangi and Samalkot together add to 6400 MW and are critical for the company.