Reliance Power's earnings jumped a whopping 44% to INR6b

Revenue also went up.

At INR17.8bn, India-based Reliance Power's (RPWR) 2QFY15 revenues were 7% above Nomura's forecast, and 5% above consensus.

According to a research note from Nomura, this was largely on account of an 11% higher-than-expected fuel cost. Non-operating income stood at INR1bn (up 75% q-q and 13% above Nomura's forecast).

Meanwhile, at ~INR6bn (up 44% y-y), RPWR’s consolidated EBITDA was in line with Nomura's/consensus forecasts whereas at INR2.5bn (up 8% y-y), consolidated PAT was 3%/9% above Nomura's/consensus forecasts.

The marginal beat on PAT was primarily driven by lower than expected tax provisioning (16.8% vs. Nomura's forecast of 18%).

Here's more from Nomura

FY14 (debtor days are up to 119 vs. 86). While long-term debt (excluding current maturities) is up from INR263bn as of FY14 to INR276bn as of 1HFY15, short-term debt on books is up by 85% to INR27bn over this period. Also, ‘other current liabilities’ is down from INR52.9bn as of FY14 to INR45.2bn as of 1HFY15.

We expect price performance to be broadly neutral; 2QFY15 earnings call is scheduled at 10:30am IST today). In our view, management’s commentary on progress on project pipeline, plea for compensatory tariff for its Sasan project, and implications of the recently promulgated Coal Ordinance will be more important drivers for the stock price performance.

We are reviewing our estimates and TP. At CMP, the stock trades at 1.0x P/B (BPS = INR77/share) and 19.6x P/E (EPS = INR3.8) on our FY16F forecasts.

RPWR’s 1HFY15 revenues/EBITDA/normalized PAT form ~48% / 38% / 50% of our FY15F forecasts.

Takeaways from project updates in media release. Operating metrics in 2QFY15 – Plant availability (PAF) and utilization (PLF) at Rosa (1200MW) was 90%/88%, PAF/PLF at Butibori (600MW) was 100%/60%, PLF of the 40MW solar PV facility was ~20% and PLF of the 45MW wind farm was ~36%.

3300MW capacity (5x660MW) is operational at the Sasan UMPP. The balance capacity (1x660MW) is expected to be commissioned this year (same guidance as per 1QFY15 earnings release). 100MW Solar CSP plant in Rajasthan was commenced operations on November 11, 2014.