This Ambani Group stock which is engaged in the business of developing, constructing, and operating power projects domestically and internationally was up by 4 percent intraday trade after the company plans to invest over Rs. 10,000 crore investment in Andhra Pradesh for solar manufacturing facility.
Price Action
With a market capitalization of Rs. 16,457.53 Crores, the shares of Reliance Power Limited touched a day’s high of Rs. 41.21 per equity share, up 5 percent. The stock reiterated from the day’s high and was trading at Rs. 40.97 per share which is 4.38 percent higher than the previous day’s close price of Rs. 39.25. The stock delivered a return of 36.47 percent and outperformed the Nifty Index in the past year.
What Happened
The stock surged in trade after the company plans to invest over Rs. 10,000 crore in a solar power plant and solar manufacturing facility in Andhra Pradesh as per the sources. The subsidiary of Reliance Power, Reliance NU Suntech Private Limited, which has won the project comprising of Battery Storage Capacity of 1,860 MWh and a Solar Power Plant of 930 MW aims to commission the project after a power purchase agreement from Solar Energy Corporation of India. They are even planning to build a composite facility in Kurnool.
About the Company
Reliance Power specializes in providing comprehensive construction and engineering services while focusing on infrastructure projects, residential developments, and commercial buildings.
Financials
Their Revenue from operations declined by 13.64 percent year on year, from Rs. 2,038 Crores in Q2FY24 to Rs. 1,760 Crores in Q2FY25, accompanied by a loss of Rs. 238 Crores to a profit of Rs. 2,878 Crores. The increase in profits was due to an exceptional item of Rs. 3,230.42 crore as a Gain from the deconsolidation of the subsidiary.
Total Generation and Capacity
The company’s total generation capacity is around 5,300 MW which comprises of Thermal Power of 5,300 MW and Renewable Energy of 140 MW. Reliance Power operates several projects which include the Rosa coal-based power project of 1,200 MW and the Sasan Ultra Mega Power coal-based project of 3,960 MW. Additionally, RPL runs the 40-MW solar photovoltaic power project and the 100-MW concentrated solar power project in Rajasthan.
Written by Santhosh S
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