Reliance Power Ltd has reported a consolidated net loss of Rs 494 crore for the quarter ended March 31, 2023, compared to a net loss of Rs 396 crore in the same period last year. The company's revenue from operations declined 12% year-on-year to Rs 1,952 crore, primarily due to lower power generation and sales.
Financial Highlights
The company's total expenses increased to Rs 2,446 crore from Rs 2,356 crore in the corresponding quarter of the previous fiscal. The rise was mainly on account of higher fuel costs and depreciation charges. On a standalone basis, Reliance Power posted a net loss of Rs 322 crore, compared to a loss of Rs 287 crore a year ago.
Segment Performance
Reliance Power's power generation segment saw a decline in revenue due to lower plant load factors and reduced merchant sales. The company's coal-based power plants operated at lower capacity, while its gas-based plants faced challenges due to high gas prices.
- Revenue from power generation fell 11% to Rs 1,850 crore.
- Other income dropped significantly to Rs 45 crore from Rs 112 crore in the year-ago quarter.
- Interest costs remained elevated at Rs 520 crore, impacting profitability.
Outlook and Measures
The company is focusing on cost optimization and improving operational efficiency. It is also exploring opportunities in renewable energy to diversify its portfolio. Management expressed confidence in turning around the business through strategic initiatives and debt reduction.
Reliance Power's shares closed 1.2% lower on the BSE following the results announcement. The company continues to face challenges from regulatory changes and fuel supply constraints.
