This power generation company is in focus as it reported its Q4 results for FY 25 with a robust increase in Net Profits of 2,808 percent on a QoQ basis. The Stock surged by 9.09 percent following the results.
With a market capitalization of Rs. 5,585 Crore, the stock of Rattan India Power opened at Rs. 9.64, down 3.69 percent from yesterday’s close, but after opening, it made a high of 10.92 percent, up 9.09 percent. Additionally, the Yearly return for the stock is 0.10 percent, and the past 5-year return is an impressive 731 percent.
Q4 FY25 Financial Highlights
The company reported a 5.39 percent YoY increase in revenue from Rs. 913.96 Crore in Q4FY24 to Rs. 936.25 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 27.67 percent in revenue from Rs. 733.32 Crore in the previous quarter.
Their Net profit saw a decrease of 98.81 percent YoY from Rs. 10,665.75 Crore to Rs. 125.94 Crore for the same period. On a QoQ basis, the company reported an increase of 2,808 percent in Net profit from Rs. 4.33 Crore in the previous quarter.
The YoY decrease of 98.81 percent in Net Profit can be attributed to Sinnar Thermal Power Limited (STPL) entering insolvency, and the group losing control over it. As a result, they removed STPL’s assets and liabilities from their books, leading to a gain of Rs. 10,658.88 crore, recorded as an exceptional item in Q4FY24.
The increase of 2,808 percent in Net Profit on a QoQ basis can be attributed to a robust revenue increase of 27.67 percent and a decline in expenses, and in particular, Cost of fuel, power, and water consumed expenses
About the Company
The Company was incorporated in 2007 and is part of the RattanIndia Group, which has interests in the power and infrastructure sectors. The company is engaged in the business of power generation. It operates large coal-based thermal power plants, with its main facility located at Amravati in Maharashtra.
They have installed a capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra, India, with investments of Rs. 18,615 crores (US $2.5 billion).
Written By Abhishek Das
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