New Delhi, October 22: Reliance Power on Thursday posted an over two-fold rise in its consolidated net profit at Rs 105.67 crore in the September 2020 quarter, mainly due to higher revenues. Its consolidated net profit was Rs 45.06 crore in the corresponding quarter a year ago, a BSE filing said.
Total income increased to Rs 2,626.49 crore in the July-September quarter from Rs 2,239.10 crore in the same period last fiscal. The company said it is confident of meeting obligations by generating sufficient and timely cash-flows through time-bound monetisation of gas-based power plant equipment and other assets of certain subsidiaries, as also realise the amount from ongoing regulatory or arbitration claims. Also Read | Royal Enfield Meteor 350 India Launch on November 6, 2020; Check Expected Price, Features & Specifications.
Considering the dependence on these material uncertain events and realisation of assets, it is confident that such cashflows would enable it to service its debt and discharge its liabilities in the normal course of its business, it added.
Accordingly, the consolidated financial results of the group have been prepared on a going concern basis. About the impact of the COVID-19 situation, it said that so far, it has been able to sustain its power plant operations and honour commitments under the various power purchase agreements.
"After witnessing sharp decline in the electricity demand, primarily from industrial and commercial consumer segments, arising from lockdown measure announced by the government to contain the outbreak of COVID-19, the demand is beginning to bounce back to its normal level on gradual lifting of lockdown restrictions," the company said.
Further, the extent to which the COVID-19 pandemic will impact the group's results will depend on future developments, which are highly uncertain, it added. Sensex Declines Over 250 Points in Early Trade; Nifty Tests 11,850.
The company said that in spite of the pandemic, it raised Rs 894 crore in the first half of the fiscal and will repay Rs 2,290 crore in the second half of FY'21 which will further improve debt equity ratio.
The group is engaged in only one segment viz. 'generation of power'. The company has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 megawatts.
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