Shares of Reliance Power Limited closed at Rs 12.25 which is about 3 percent higher than the previous closing levels of Rs 11.90. In the past month period, the stock has jumped around 13.5 percent ranging from Rs 10.80 to the current price levels.
One of the probable reasons for the stock prices to surge today is the recent announcement made by the company pertaining to the financial results of last quarter as well as for FY22-23. Details of the same have been mentioned later on in the piece.
Reliance Power Limited is an electric utility that is involved in the business of constructing, developing, and operating power generation projects. Its sole operating segment comprises ‘Power Generation’ and includes all of the projects undertaken by the company.
Moreover, the company undertakes Renewable resource projects that include hydro, solar, and wind power. The company derives a majority of its revenue from the sale of energy.
Having a quick walkthrough of the financials reported by the company, the operating revenues reduced from Rs 1,886 crores in Q3 to Rs 1,730 crores in Q4. On a contrasting note, the net profits of the company, during the same period, transitioned into the green from net losses of Rs 243 crores to profits of Rs 250 crores.
Having a YoY comparison of the metrics mentioned above, the revenues slightly improved from Rs 7,503 crores during FY21-22 to Rs 7,543 crores in FY22-23. The PAT numbers, though negative, have shifted to a lesser negative number within the timeframe mentioned from losses of Rs 923 cores to losses of Rs 361 crores.
The debt-to-equity ratio of the company, though above the desired levels, has shown improvement from 2.09 during FY20-21 to 1.88 in FY21-22.
According to the latest data pertaining to the shareholding pattern, promoters of the company hold a 24.99 percent stake, and Foreign Institutional Investors (FIIs) hold a 7.35 percent stake in the company.
Written by Amit Madnani
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