Reliance Power’s shares rose 8.64% to Rs 43.37 on the BSE in early trade on Thursday after the business posted a net profit of Rs 41.95 crore for the quarter that ended December 31. This is a significant recovery from a loss of Rs 1,136.75 crore from the previous year. Meanwhile, the company had already returned to profitability in the second quarter of fiscal year 25 with a profit of Rs 2,878.15 crore, boosted by an unusual gain of Rs 3,230.42 crore from the deconsolidation of a subsidiary.
Revenue from operations fell 4.6% to Rs 1,852 crore in Q3FY25, compared to Rs 1,943 crore in the previous year. Meanwhile, costs were reduced by 33% to Rs 2,109.56 crore, down from Rs 3,167.49 crore the previous year. Reliance Power’s auditors raised significant concerns about the financial health of a subsidiary, Rajasthan Sun Technique Energy (RSTEPL), which has defaulted on debt repayments and suffered repeated losses.
Management has maintained that the entity’s accounts were produced on a continuing concern basis, citing ongoing debt settlement negotiations with lenders. The corporation is also pursuing regulatory compensation for foreign currency rate fluctuations and changes in direct normal irradiance (DNI). “The group is optimistic that it will satisfy its liabilities in the regular course of business and by the timely monetization of gas-based power plants and other subsidiary assets. Accordingly, the group’s consolidated unaudited financial results have been reported on a continuing concern basis,” the auditor’s note added.
Reliance Power provides technical Indicators:
Technically, the stock’s relative strength index (RSI) is at 49.5. The trendline defines oversold situations as an RSI below 30, while overbought conditions are indicated by an RSI more significant than 70. Furthermore, the MACD is at -0.9, below its center line, indicating a bearish trend. The stock is now trading below its 30-day, 50-day, and 100-day simple moving averages but above its 5-day, 10-day, 20-day, 150-day, and 200-day SMAs.
Reliance Power’s Stock Efficiency:
On Wednesday, Reliance Power’s shares finished at Rs 39.9, down 0.05% on the BSE, while the benchmark Sensex fell 0.4%. The stock is down 11% year to date but up 239% over the previous two years. The company’s market valuation is Rs 16,023 crore.