Reliance Power Q1FY25 results: Net loss narrows to Rs 97.85 crore

Reliance Power narrowed its consolidated net loss to Rs 97.85 crore for the quarter ended June 30, 2024 (Q1FY25), owing to a rise in revenue and a fall in expenses.

The power generation company's Q1FY25 net loss was lower compared with a net loss of Rs 296.3 crore for the same quarter the previous year. Revenue was up 6 per cent at Rs 2,069.1 crore, due to an increase in other income.

Other income was Rs 76.95 crore compared with Rs 36.90 crore in the same quarter the previous year, a more than two-fold increase.

Expenses for the quarter were recorded at Rs 2,142.51 crore, compared with Rs 2,172.63 crore in the same quarter the previous year, a 1.3 per cent decrease.

 

Revenue rose 6.04 per cent to Rs 2,069.18 crore compared with Rs 1,951.23 crore in the same quarter the previous year.

In the quarter ending June 30, 2024, Reliance Power said it received a notice under Section 7 of the Insolvency and Bankruptcy Code, 2016, from Vidarbha Industries Power Limited's (VIPL's) lender, claiming Rs 3,901.5 crore related to a corporate guarantee provided by the company for VIPL's borrowings. The company plans to propose a settlement and safeguard its interests in the ongoing proceedings.

In its results note, the company stated that the Reliance Group has progressively generated and is generating adequate and timely cash flow through a series of actions, including raising capital, realization from regulatory assets, actionable claims, arbitration awards, and monetization of gas-based power plant equipment and other assets, to meet its obligations. This is reflected in the substantial reduction of liabilities.

Discontinued operations of the company include Maharashtra Energy Generation Limited, Chitrangi Power Private Limited, the Wind Project, and the Dadri Project.

The company's shares closed at Rs 29.77 per share, down 2.01 per cent, while the benchmark Sensex was higher by 0.19 per cent at 79,105.88 points.