1st Quarter Results

Notes:

1. The final determination in the matter of Standby Charges payable for the years 1998-99 to 2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme Court for final hearing. The Company has so far fully accounted the liability of Rs. 515.60 crore as determined earlier by Maharashtra Electricity Regulatory Commission (MERC).

2. The final determination in respect of the claim by TPC of Rs. 323.87 crore, along with interest based on the Orders passed by MERC / Appellate Tribunal for Electricity (ATE) towards difference in energy charge and minimum offtake charges for energy supplied by TPC at 220 kV interconnection is pending before Supreme Court for final hearing. The Company has complied with the interim order direction of depositing Rs. 25 crore with the Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98 crore.

3. Pursuant to the approval of the Board of Directors for buy-back of Equity shares under Section 77A of the Companies Act, 1956, the Company bought-back 21,00,000 equity shares during the quarter ended June 30, 2011. Consequently the paid-up capital stands reduced to Rs. 265.32 crore. Out of the above 50,000 shares have been extinguished subsequently on July 3, 2011.

4. Pursuant to the clarification provided by the Ministry of Corporate Affairs vide circular dated May 31, 2011 and based on the legal opinion obtained, the Company has provided for depreciation in respect of its Electricity business following the rates as well as methodology notified by the Electricity Regulator retrospectively w.e.f April 1, 2009 as against Schedule XIV to the Companies Act, 1956. Accordingly depreciation of Rs. 227.18 crore for the years 2009-10 and 2010-11 has been written back during the quarter ended June 30, 2011 and has been included in other operating income, resulting in increase in profit before tax for the quarter ended June 30, 2011 to that extent. Similarly, the depreciation charge for the current quarter is lower and profit before tax is higher by Rs.9.60 crore on account of such change.

5. Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended June 30, 2011: opening: Nil; additions: 07; disposals: 07; closing: Nil.

6. There were no exceptional / extraordinary items during the quarter ended June 30, 2011.

7. The aforesaid standalone financial results were reviewed by the Audit Committee of the Board at its meeting held on August 10, 2011 and subsequently approved by the Board of Directors on August 11, 2011. The statutory auditors of the Company have carried out a "Limited Review" of the financial result of the Company, as per the listing agreement entered into with the stock exchanges in India.

8. Figures of the previous period / year have been regrouped / reclassified wherever considered necessary.

9. There has not been any significant change in or any special factor influencing the business activities of the Company during the quarter ended June 30, 2011, except as specifically mentioned in the above Notes.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: August 11, 2011 Chairman

Notes: 

1. The final determination in the matter of Standby Charges payable for the years 1998-99 to 2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme Court for final hearing. The Parent Company has so far fully accounted the liability of Rs. 515.60 crore as determined earlier by Maharashtra Electricity Regulatory Commission (MERC).

2. The final determination in respect of the claim by TPC of Rs. 323.87 crore, along with interest based on the Orders passed by MERC / Appellate Tribunal for Electricity (ATE) towards difference in energy charge and minimum offtake charges for energy supplied by TPC at 220 kV interconnection is pending before Supreme Court for final hearing. The Parent Company has complied with the interim order direction of depositing Rs. 25 crore with the Registrar of Supreme Court and providing a Bank Guarantee of Rs. 9.98 crore.

3. Pursuant to the approval of the Board of Directors for buy-back of Equity shares under Section 77A of the Companies Act, 1956, the Parent Company bought-back 21,00,000 equity shares during the quarter ended June 30, 2011. Consequently the paid-up capital stands reduced to Rs. 265.32 crore. Out of the above 50,000 shares have been extinguished subsequently on July 3, 2011.

4. Pursuant to the clarification provided by the Ministry of Corporate Affairs vide circular dated May 31, 2011 and based on the legal opinion obtained, the Group has provided for depreciation in respect of its Electricity business following the rates as well as methodology notified by the respective Electricity Regulators retrospectively w.e.f April 1, 2009 as against Schedule XIV to the Companies Act, 1956. Accordingly, depreciation of Rs. 226.62 crore for the years 2009-10 and 2010-11 has been written back during the quarter ended June 30, 2011 and has been included in other operating income, resulting in increase in profit before tax for the quarter ended June 30, 2011 to that extent. Similarly, the depreciation charge for the current quarter is lower and profit before tax is higher by Rs. 10.81 crore on account of such change.

5. Information on investor complaints pursuant to Clause 41 of the listing agreement for the quarter ended June 30, 2011: opening: Nil; additions: 07; disposals: 07; closing: Nil.

6. There were no exceptional / extraordinary items during the quarter ended June 30, 2011.

7. The Company has opted to publish consolidated financial results. Standalone financial results, for the quarter ended June 30, 2011 can be viewed on the websites of the Company, National Stock Exchange of India Limited and Bombay Stock Exchange Limited at www.rinfra.com, www.nseindia.com and www.bseindia.com respectively. Key standalone financial information is given below:

(Rs. crore)

8. The aforesaid financial results were reviewed by the Audit Committee of the Board at its meeting held on August 10, 2011 and subsequently approved by the Board of Directors on August 11, 2011.

9. Figures of the previous period / year have been regrouped / reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: Mumbai Anil D. Ambani

Date: August 11, 2011 Chairman

MEDIA RELEASE

CONSOLIDATED NET PROFIT OF Rs 405 CRORE (US$ 91 MILLION) FOR THE QUARTER - AN INCREASE OF 8%

CONSOLIDATED TOTAL OPERATING INCOME OF Rs 5,191 CRORE

(US$ 1.2 BILLION) FOR THE QUARTER - AN INCREASE OF 38%

CONSOLIDATED EPC REVENUE OF Rs 1,754 CRORE (US$ 392 MILLION) FOR THE QUARTER - AN INCREASE OF 295%

EPC ORDERBOOK POSITION OF Rs 28,000 CRORE (US$ 6.3 BILLION)

CONSOLIDATED BOOK VALUE OF Rs 903 (US$ 20) PER SHARE AND NETWORTH OF Rs 24,025 CRORE (US$ 5.4 BILLION)

CONSERVATIVELY FINANCED WITH DEBT: EQUITY OF 0.55

Mumbai, August 11, 2011: Reliance Infrastructure Limited today announced its un-audited consolidated financial results for the quarter ended June 30, 2011. The highlights are:

Key Highlights

§ Mumbai Distribution : 

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 a levy of Cross Subsidy Surcharge on all migaring consumers from date of migration

§ Road Projects: Developing 11 road projects of 970 kms

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, is operational from June 2011 

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

o Delhi Metro ( 23 kms & 6 Stations) :

§ Trains are running with 99.9% reliability for 18 hours a day

§ Baggage check-in facility started in Delhi Metro at Shivaji Stadium station and New Delhi Railway station.

§ Frequency of train increased by 33% to 15 minutes

§ Daily commuters increased to over 12,000 in just 5 months of operation

§ Deal signed for retail and advertising with marquee vendors

o Mumbai Metro Line 1: (12 kms & 12 stations) : Project is scheduled to be commissioned in Q4FY12

o Mumbai Metro Line 2 (32 kms & 27 stations) : Achieved financial closure; Topographical survey of alignment is complete.

§ Transmission:

o WRSS project (1,500 km in Gujarat & Maharashtra) : Line 1 and Line 2 have started generating revenue and project is expected to be operational by FY12

o Mumbai Strengthening project: 3 receiving stations have been charged and registered an all time high availability of 99.7%

§ EPC Revenue : EPC revenue of Rs 1,889 crore for the quarter - an increase of 214%

§ Buy-Back : Bought-back 22.5 lakh shares of Rs 140 crore till date

Consolidated - Quarter ended June 30, 2011

·; Total Operating Income of Rs 5,191 crore (US$ 1.2 billion), against Rs 3,752 crore in the corresponding quarter of previous year, an increase of 38%

·; Net Profit of Rs 405 crore (US$ 91 million), against Rs 375 crore in the corresponding quarter of previous year, an increase of 8%

·; Cash Profit of Rs 637 crore (US$ 143 million), against Rs 508 crore in the corresponding quarter of previous year, an increase of 25%

·; Cash Earnings Per Share (Cash EPS) of Rs 23.9 against Rs 20.7 in the corresponding quarter of previous year

·; Earnings Per Share (EPS) of Rs 15.2 against Rs 15.3 in the corresponding quarter of previous year

On Consolidated basis, the net worth of the Company stood at Rs 24,025 crore (US$ 5.4 billion) and book value per share at Rs 903 as on June 30, 11. The Company's total debt on consolidated basis stood at Rs 13,300 crore (US$ 3.0 billion). The company has enough borrowing capacity with debt to equity ratio of 0.55 as on June 30, 2011.

On Standalone basis, the net worth of the Company stood at Rs 17,967 crore (US$ 4.0 billion) and book value per share at Rs 677 as on June 30, 11. The Company's total debt on standalone basis stood at Rs 4,601 crore (US$ 1.0 billion).

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 contribution in various infrastructure SPVs is Rs 4,850 crore (US$ 1.1 billion)

Reliance Infrastructure Limited

Reliance Infrastructure Ltd (RInfra) is the largest infrastructure company developing projects, through various Special Purpose Vehicles, in several high growth areas in Infrastructure sector i.e. Roads, Metro rail, Airports, etc. The Company is also leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution, EPC and Trading.

The Company is developing two metro rail projects in Mumbai and operating Airport Metro Express in Delhi; awarded eleven road projects with total length of 970 kms; operate and maintain five airports in Maharashtra.

RInfra generates 940 MW of power through its five power stations; distributes power to over 5.4 million consumers in Mumbai and Delhi; developing five transmission projects including first Independent Private Transmission project in India.

RInfra also provides Engineering, Procurement and Construction (EPC) for developing power & road projects and currently have an orderbook of about Rs. 28,000 crore.