Reliance Power shares hit 10% lower circuit limit on Rs 3,559 crore Q4 loss

NEW DELHI: Shares of Reliance Power hit the lower circuit limit of 10 per cent in Monday's session after the company on Friday reported a net loss of Rs 3,558.51 crore in the January-March quarter.

The company reported a net loss of Rs 3,558.51 crore in the January-March quarter, dented by the impairment and writeoff, as against a profit of Rs 189.21 crore a year ago.

Total income in the quarter declined to Rs 1,687.86 crore from Rs 2,321.68 crore.


The company made a withdrawal of Rs 1,017 crore from its general reserves, reducing the impact of the one-time impairment and writeoff. Auditors of the company highlighted that the losses would have been higher without this.

Repayment delays and asset impairments at the company are adding to short-term debt concerns at the Anil Dhirubhai Ambani Group (ADAG), ET reported.

Reliance Power has booked impairment and write-offs worth Rs 4,170 crore in the March quarter. This is a one-time exercise. But the inability to pay installments on the 125-mw Rajasthan solar power plant, and failure to meet milestones relating to the Samalkot gas-based unit resulted in the reclassification of some Reliance Power loans.

That led to a greater mismatch between current liabilities and current assets, causing concern over the company’s ability to repay short-term debt, the report added.

The share of the company closed 6.81 per cent down at Rs 5.75 a piece on BSE.