OREANDA-NEWS. November 9, 2011. Reliance Infrastructure Limited announced its un-audited consolidated financial results for the quarter ended September 30, 2011. The highlights are:

Key Highlights

■ Mumbai Distribution :

o MERC granted distribution license for next 25 years

o MERC has approved the recovery of Regulatory Assets of Rs 2,316 crore from all consumers

connected to RInfra's network including those supplied by Tata Power o MERC has allowed levy of Cross Subsidy Surcharge on all migrating consumers from date of migration

■ Delhi Distribution :

o Delhi Electricity Regulatory Commission (DERC) in its recent order has approved Tariff hike of 22% and Introduction of quarterly Fuel Price Adjustment surcharge wef October 01, 2011 for Delhi Distribution business.

■          Generation :

o Dahanu Thermal Power plant becomes the first plant in the world to receive "ISO 50001:2011" certification for Energy Management System

■          Transmission:

o WRSS project (1,500 km in Gujarat & Maharashtra) : More than half (i.e 5 out of 9 transmission lines) of the project is commissioned and revenue generating. The project is expected to be fully operational within FY12

o Mumbai Transmission project : MERC granted Mumbai Transmission license for next 25 years. Three Extra High Voltage (EHV) stations have been charged and registered an all time high availability of 99.8%

■ Road Projects: Developing 12 road projects of 1,000 kms including the iconic sea link of the country

o Have 4 operational projects and additional 6 road projects would start generating revenue in FY12 o Hosur Krishnagiri (in Tamil Nadu) 6 laning project, part of Bengaluru Chennai Golden quadrilateral

became operational in FY12 o First road developer in the country to launch "Mobile Environment Monitoring System" at Pune Satara Toll road which offers commuter, pollution free commute on the corridor.

■          Metro Projects : Developing 3 metro rail projects in Mumbai and Delhi with a total stretch of 66 kms, having 45 stations

o Reliance Metro Airport Link in Delhi (23 kms & 6 Stations):

❖        Daily commuters have crossed to over 18,000 in just 8 months of operation

❖        Airline check-in with baggage facility started at Shivaji Stadium station, New Delhi Railway station and Dhaula Kuan stations

❖        Trains are running successfully for 18 hours a day

❖        Frequency of train increased to 12 mins during peak hours and 15 mins for remaining day

❖        Retail deals closed of ~30,000 sqft with key players like W H Smith, Cafe Coffee Day, Samsonite, VIP, Dabur, Cafe Oz, etc at stations

❖        Advertisement deals signed with marquee vendors like Lufthansa, Pepsi, Lipton, Reebok, etc.

❖        Various initiatives like Feeder Buses, Chota Pass, Monthly Pass has been started to create awareness and increase ridership

o Reliance Metro Line I in Mumbai (12 kms & 12 stations): More than 80% of civil work is completed and the project is scheduled to be commissioned in FY12

o Reliance Metro Line II in Mumbai (32 kms & 27 stations) : Achieved financial closure; Topographical survey of alignment is complete and Geo Technical investigation is in progress

■          EPC Revenue : EPC revenue of Rs 2,212 crore for the quarter - an increase of 211%

■          Buy-Back : Bought-back 40.3 lakh shares of Rs 217 crore till November 7, 2011

Consolidated - Quarter ended September 30, 2011

•           Total Operating Income of Rs 5,729 crore (USD  1.2 billion), against Rs 4,043 crore in the corresponding quarter of previous year, an increase of 44%

•           Net Profit of Rs 362 crore (USD  74 million), against Rs 360 crore in the corresponding quarter of previous year

•           Cash Profit of Rs 538 crore (USD  110 million), against Rs 486 crore in the corresponding quarter of previous year, an increase of 11%

•           Cash Earnings Per Share (Cash EPS) of Rs 20.4 against Rs 19.8 in the corresponding quarter of previous year

•           Earnings Per Share (EPS) of Rs 13.8 against Rs 15.0 in the corresponding quarter of previous year

On Consolidated basis, the net worth of the Company stood at Rs 24,419 crore (USD  5.0 billion) and book value per share at Rs 927 as on September 30, 11. The Company's total debt on consolidated basis stood at Rs 14,980 crore (USD  3.1 billion). The company has enough borrowing capacity with debt to equity ratio of 0.61 as on September 30, 2011.

The Company remains debt free at the net level and enjoys the top end ratings of 'AA+' and 'AA' from CRISIL and FITCH respectively.

The Company's total equity contribution in various infrastructure SPVs is Rs 4,010 crore (USD  819 million)

MANAGEMENT DISCUSSION AND ANALYSIS ELECTRICITY BUSINESS

Electricity business includes distribution business, power plants, transmission lines and trading business. Energy Sales

The Company achieved aggregate sales of electrical energy on standalone basis of 2,060 million units during the quarter ended September 30, 2011 against 2,415 million units in the corresponding quarter of previous year

The Company's aggregate revenue from energy sales was Rs 1,519 crore during the quarter ended September 30, 2011 against Rs 1,573 crore in the corresponding quarter of previous year.

Mumbai Distribution

The Mumbai distribution business achieved aggregate sales of electrical energy of 1,628 million units

during the quarter ended September 30, 2011 against 1,914 million units in the corresponding quarter of previous year

The Company's aggregate revenue from energy sales in Mumbai Distribution is Rs 1,060 crore

during the quarter ended September 30, 2011 compared to Rs 1,341 crore in the corresponding quarter of previous year. In addition, the Company earned wheeling income of Rs 54 crore during the quarter compared to Rs 29 crore in the corresponding quarter of previous year owing to shift of consumers to Tata Power.

During the period, the Company purchased 858 million units of electrical energy from external sources as compared to 1,055 million units purchased in the corresponding quarter of previous year.

The cost of energy purchased decreased by 6% to Rs 608 crore in Q2FY12 compared to Rs 643 crore in the corresponding quarter of previous year.

During the period, the Company added 19,837 consumers and there are 28.3 lakh consumers using RInfra's network.

Maharashtra Electricity Regulatory Commission (MERC) granted distribution license to RInfra for the next 25 years for distributing power in Mumbai suburban area.

MERC in its order dated July 29, 2011 has approved recovery of regulatory assets of Rs 2,316 crore

from all consumers on RInfra network.

MERC in its order dated September 09, 2011 has determined the Cross Subsidy Surcharge to be recovered from migrated consumers who contribute towards consumers paying less than cost of supply

Delhi Distribution

The Delhi distribution business achieved aggregate sales of electrical energy of 4,369 million units

during the quarter ended September 30, 2011 against 4,032 million units in the corresponding quarter of previous year. The Company's aggregate revenue from energy sales in Delhi Distribution is Rs 2,180 crore during the quarter ended September 30, 2011 compared to Rs 1,814 crore in the corresponding quarter of previous year.

Delhi Electricity Regulatory Commission (DERC) in its recent order has approved tariff hike of 22% and introduction of quarterly Fuel Price Adjustment surcharge for Delhi Distribution business.

ReLi/\Nce

Transmission

The Company is developing 5 transmission projects including 2 Ultra Mega Transmission Projects

(UMTP's) i.e. North Karanpura and Talcher - II, with total project outlay of Rs 6,600 crore

•           WRSS project: More than half of 1,500 kms transmission line (i.e 5 lines out of 9 lines) in Maharashtra and Gujarat are commissioned and revenue generating. This is the first transmission line to be commissioned in a record time of 15 months and will enable transmit 4,000 MW of power in western region. Stringing has been completed for 684 kms of transmission lines and complete project is expected to be operational within FY12

•           Mumbai Strengthening project: MERC granted Mumbai Transmission license for next 25 years. Three Extra High Voltage (EHV) stations have been charged and registered an all time high availability of 99.82% against MERC target of 98%. The Company also won "Asia's 2nd Best Employer Brand Award 2011".

Power Generation

During the quarter, all the generating plants continue to outperform all major operational parameters and Dahanu Power Plant continues to have PLF of over 100% for consecutive 7th year. Dahanu Power Plant becomes the first power plant in the world to receive "ISO 50001:2011" certification for Energy Management System. The total units generated by the plants are 1,492 million units during the quarter ended September 30, 2011.

Energy Trading Business

The division has traded 1,054 million units during the quarter ended September 30, 2011 as compared to 1,583 million units in the corresponding quarter of previous year. The Company is now focusing more on trading through Exchange to increase the trading business. RETL is consistently ranked amongst the top five trading licensees by CERC.

EPC BUSINESS

During the quarter, the turnover of the division was Rs 2,212 crore against Rs 712 crore in the corresponding quarter of previous year - a significant increase of 211%. The Division has order book position of Rs 24,325 crore as on September 30, 2011.

The EPC Division is working on 6 power projects of over 9,900 MW, one transmission project of 1,500 kms along with 6 road projects totaling 570 kms.

INFRASTRUCTURE PROJECTS

The Company is developing infrastructure projects comprising of 12 Roads, 3 Metro Rail, 5 Airports and 2 Cement projects. RInfra is the country's largest infrastructure company on an ownership basis.

During the quarter, the Company's aggregate revenue from infrastructure business was Rs 77 crore

against Rs 13 crore in the corresponding quarter of previous year - a significant increase of over 500%

Roads

The Company is developing 12 road projects of ~1,000 kms worth Rs 16,500 crore. Of which, 4 projects are already operational and additional 6 road projects would start generating revenue in FY12. First road developer in the country to launch "Mobile Environment Monitoring System" at Pune Satara Toll road to offer commuters pollution free commutes on the corridor. Construction progress is at full swing with more than 6,500 people working on various sites.

Sea link

The Company is developing the first sea link of the country i.e. Western Freeway Sea Link in Mumbai with project outlay of Rs 4,550 crore. The project has an agreement with MSRDC for 40 years of concession period. The project has already achieved financial closure.

Metro Rails

The Company is the largest private player in metro rail sector in the Country. The Company is developing 3 metro rail projects in Mumbai and Delhi worth around Rs 17,000 crore.

Some of the major mile stones achieved in metro projects are :

•           Reliance Metro Airport Link in Delhi started commercial operations in Q4FY11 - First PPP metro project to become operational in India. The patronage in all the passenger segments has shown satisfactory response touching a passenger throughput of about 18,000 passengers on a daily basis. Trains are running successfully for 18 hours a day at a frequency of 12 mins during peak hours and 15 mins for remaining day. Airline check-in with baggage facility started at Shivaji Stadium station, New Delhi Railway station and Dhaula Kuan stations.

Almost 30,000sqft area of retail deals closed with key players like W H Smith, Cafe Coffee Day, Samsonite, VIP, Dabur, Cafe Oz, etc at stations. Advertisement deals signed with marquee vendors like Lufthansa, Pepsi, Lipton, Reebok etc. Various initiatives like Feeder Buses, Chota Pass, Monthly Pass has been started to create awareness and increase ridership.

•           Reliance Metro Line I in Mumbai construction is in full swing for major structures including Western Express Highway Bridge, Railway Line Bridge, etc. Viability Gap Funding of Rs 388 crore has been received from MMRDA. More than 80% of the civil work completed and the project is scheduled to be commissioned in FY12.

•           Reliance Mumbai Metro Line II in Mumbai - Topographical Survey of the alignment is completed and Geo Technical investigation is in progress. M/s Systra of France is appointed as design consultants.

Cement

Reliance Cement Company Pvt Ltd, a 100% wholly owned subsidiary of the Company is developing two cement plants of 5 million tons each in Maharashtra and Madhya Pradesh. Major order has been placed for Plant & Machinery and formal Environmental clearance received for both the projects. Two mining lease has been granted for Madhya Pradesh project. 35% of civil construction work completed in grinding unit at Butibori.