Reliance Power shares hit 5% upper circuit as Q1 net loss narrows to ₹98 crore

In its quarterly results, released after market hours on Wednesday, August 14, Reliance Power reported a consolidated net loss of ₹97.85 crore in the June 2024 quarter, as compared to a net loss of ₹296.31 crore in the same quarter a year ago.

Reliance Power's financial statement filed with the stock exchanges reported that total income increased to ₹2,069.18 crore in the June quarter, compared to ₹1,951 crore in the same quarter a year ago. This marks an increase of 6% year-on-year in the company's total income.

The improved financials were a result of a significant drop in the company's Selling, General, and Administrative (SG&A) expenses. Reliance Power's SG&A expenses declined to under ₹279 crore from ₹304.89 crore on a year-ago basis.

On a quarter-on-quarter basis, the company’s net loss narrowed from ₹397.56 crore in the March quarter of FY24. The total income of the company slightly declined to ₹2,069.18 crore in Q1FY25 from ₹2,193.85 crore in Q4FY24.

Reliance Power has 6,000 MW of operational power generation assets. In the March quarter of FY24, the company became net debt-free on a standalone basis.

Shares of Reliance Power opened marginally higher at ₹30.98 apiece on the NSE on Friday compared to the previous close of ₹29.75 apiece. The stock rallied as much as 5% to hit the upper circuit limit at ₹31.23.

The Anil Dhirubhai Ambani Group stock has gained nearly 33% in the past one year and more than 16% in the past six months. Shares of Reliance Power have rallied 7% in the past one month.