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Reliance Power Q2 results: Profit rises over two-fold to Rs 106 crore, revenue up 17%

Reliance Power Q2 results: The debt-laden company has repaid Rs 894 crore of loan in first six months of the current fiscal and plans to repay around Rs 2,290 crore in second half of FY21

Chitranjan Kumar | October 22, 2020 | Updated 22:29 IST
Reliance Power Q2 results: Profit rises over two-fold to Rs 106 crore, revenue up 17%
Anil D. Ambani, the Chairman of Reliance Power

Anil Ambani-led Reliance Power on Thursday reported an over two-fold jump in its consolidated net profit at Rs 105.67 crore for the second quarter ended September 30, 2020, on the back of higher revenues. The Reliance Anil Dhirubhai Ambani Group company had posted consolidated net profit of Rs 45.06 crore in the same quarter a year ago, it said in a regulatory filing.

For the July-September quarter of the current fiscal, the debt-laden company, formerly Reliance Energy Generation Limited, reported total income of Rs 2,626.49 crore as compared to Rs 2,239.10 crore in year ago period, registering a year-on-year growth of 17.3 per cent.

Despite ongoing COVID-19 pandemic, the company has repaid Rs 894 crore of loan in first six months of the current fiscal and plans to repay around Rs 2,290 crore in second half of FY21, which will further improve its debt equity ratio, it said.

The company has outstanding obligations payable to lenders and its current liabilities exceed current assets as at September 30, 2020. It is confident of meeting obligations by generating sufficient and timely cash-flows through time-bound monetisation of gas-based power plant equipment and other assets of certain subsidiaries, as also realise the amount from ongoing regulatory or arbitration claims.

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Considering the dependence on these material uncertain events and realisation of assets, it is confident that such cashflows would enable it to service its debt and discharge its liabilities in the normal course of its business, it added.

On COVID-19 impact, Reliance Power said that it witnessed sharp decline in the electricity demand during lockdown period, primarily from industrial and commercial consumer segments, but it bounced back to its normal level on gradual lifting of restrictions.

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"Further, the extent to which the COVID-19 pandemic will impact the company's results will depend on future developments, which are highly uncertain, including, among other things, any new information concerning the severity of the pandemic; any action to contain its spread or mitigate its impact whether government-mandated or elected by the company and further evolving impact on distribution utilities in terms of demand for electricity; consumption mix; resultant average tariff realisation; bill collections from consumers, and support from respective state governments and banks & financial institutions, including those focused on power sector financing," it said.

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Ahead of Q2 earnings, shares of Reliance Power ended Thursday's trade 10.48 per cent higher at Rs 2.74, against previous closing price of Rs 2.48 on the BSE.

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