Reliance Power Rebounds with Major Profit Turnaround

Reliance Power reported a net profit of Rs 2,878.15 crore in the July-September 2023 quarter, bouncing back from a net loss the previous year. The profit boost is attributed to the deconsolidation of a subsidiary and settlement of obligations. The company's income, however, saw a decline compared to last year.

Reliance Power has made a notable comeback this financial quarter, reporting a consolidated net profit of Rs 2,878.15 crore for the July-September period. This marks a recovery from a net loss of Rs 237.76 crore recorded in the same quarter of the previous year, according to data filed on Tuesday.

The turnaround is largely driven by the deconsolidation of a subsidiary, leading to a gain of Rs 3,230.42 crore. This process relieved Reliance Power of certain financial liabilities and obligations related to Vidarbha Industries Power Ltd, effectively settling Rs 3,872 crore in guarantor obligations.

Despite the financial gains from deconsolidation, Reliance Power's total income dipped to Rs 1,962.77 crore from Rs 2,116.37 crore in the same quarter last year. As of September 17, 2023, Vidarbha Industries Power Ltd ceased being a subsidiary, reflecting these changes in the group's consolidated financial statements.

(With inputs from agencies.)