Reliance Power reports a 44% increase in first-quarter net profit amid ongoing legal investigations and subsidiary challenges, highlighting resilience in core operations despite group-level pressures.
Reliance Power reported a sharp rise in first-quarter profit even as the Anil Ambani-led group company faced fresh scrutiny over legacy liabilities, legal disputes and subsidiary stress. The company said consolidated net profit climbed 44% to ₹65 crore in the quarter ended June 30, while revenue from operations rose 4% to ₹1,956 crore. It added that its core generation business continued to run normally despite the wider uncertainty around parts of the group.
The results also highlighted a mixed operating backdrop. Business Standard reported that the company had posted a profit of ₹44.68 crore in the same period last year after a loss in the comparable quarter, while revenue then was lower at ₹1,885.58 crore. Economic Times said total debt servicing in the quarter stood at ₹584 crore and that Reliance Power’s flagship 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh delivered a plant load factor of about 91%, underlining the strength of its main asset even as group-level pressures persisted.
At the same time, the company disclosed continuing legal and financial strain. In its filings, Reliance Power said the Central Bureau of Investigation had carried out searches at its registered offices and at Reliance Cleangen Ltd over transactions linked to Reliance Commercial Finance and Reliance Home Finance, and said it had cooperated fully. It also said certain group entities remain under Enforcement Directorate scrutiny and that while assets have been attached, it expects no immediate hit to operations or accounts. The company separately said warrants worth ₹34.32 crore lapsed after they were not converted into equity in time, leading to forfeiture of ₹302.62 crore in subscription money.
The most serious pressure points remain at two subsidiaries. Reliance Power said Rajasthan Sun Technique Energy Pvt Ltd has defaulted on lender repayments after technology used in its solar project failed to perform as expected, while a dispute over compensation remains stayed by the Supreme Court. It also said insolvency proceedings have been initiated after lender action against Samalkot Power Ltd, though it expects asset monetisation there, subject to approvals, to help meet obligations. A further layer of risk emerged when The Economic Times and Mint reported that the Enforcement Directorate filed a chargesheet in a separate money-laundering case linked to an alleged fake bank guarantee, with the company insisting it and its subsidiaries acted in good faith and were victims of fraud. Reliance Power said it still expects to remain a going concern and fund liabilities through normal operations and time-bound asset sales.
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