Reliance Power Ltd has posted a rise in net profit to 2.40 billion rupees from 1.96 billion rupees in April-June. The company has revealed that its sales have doubled at 11.36 billion rupees. This is in line with the expectations of analysts. The company operates at 1,540 MW capacity and is all set to triple its capacity to 5,000 MW by the end of 2012.
Despite a good show up of Reliance Power Qtly results, two giant projects of the company have been stalled, due to the scarcity of cheap fuel. The company will hold a news conference on Tuesday to talk specifically about these projects. The scarcity of cheap fuel has prompted many power plants in the country to run below the capacity. This led to world’s worst blackout a fortnight ago which affected half of the Indian population.
In order to meet the shortage of fuel, Reliance Power has been lobbying the government to import gas. Reliance Power, controlled by billionaire Anil Ambani, is caught in a legal dispute with government of four states over the issue of $3.2 billion power project in southern state of Andhra Pardesh.
The shares of Reliance Power Ltd. NSE closed at INR93.15 and saw a high of 1.8% by reaching INR93.90 share value. Reliance Power has proven worthwhile to its shareholders and traders.