Reliance Power third quarter profit increases 6% to Rs 52 crore

The profit rise was mainly helped by higher revenues.

Reliance Power on Thursday posted nearly 6 per cent rise in consolidated net profit at Rs 52.29 crore for December quarter 2020 mainly due to higher revenues.

The company logged a profit of Rs 49.38 crore in the year-ago period, a BSE filing said.

Total income rose to Rs 2,006.66 crore in the quarter from Rs 1,897.93 crore a year ago.

The company said its debt to equity ratio of 2.24 in the quarter is among the lowest in the industry.

It further said despite the pandemic, the company repaid Rs 1,271 crore debt in nine months ended December 31, 2020 and will repay Rs 2,000 crore in March quarter of this fiscal to further improve the debt to equity ratio.

The group is only engaged in generation of power.

It said there exists some uncertainty over the impact of COVID-19 on future business performance which will depend on further developments, including, among other things, any new information concerning the severity of the pandemic.

Also, any action to contain its spread or mitigate its impact whether government-mandated or elected by the group and further evolving impact on distribution utilities in terms of demand for electricity; consumption mix; resultant average tariff realization; bill collections from consumers may also impact the performance.

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.