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Reliance Power recorded a consolidated net profit of ₹ 126 crore in the January-March quarter of FY 25.
Anil Ambani’s company Reliance Power’s share rose about 16% on Friday (May 30) on Friday. The company’s stock opened at Rs 52.52 in early trade. The stock then made a 52-whee and day-high of Rs 60.50.
However, the company’s stock market closed at Rs 58.09 with a gain of 11.24% when closes were closed. In the last one month, the company’s stock has climbed 45% and 50% in six months. At the same time, the company’s stock has climbed 135% in a year. The company’s market cap is 23.97 thousand crores.
Two reasons for Reliance Power’s stock boom
There are two reasons for the company’s shares. First- Reliance NU Energe, a subsidiary of Reliance Power, has recently received a letter of Award (LOA) for solar power projects associated with 350 MW Inter-State Transmission System (ISTS) from the government company SJVN Limited, which is connected to the 175 MW/700 MWH battery energy storage system (BASS).
Secondly, on 23 May, Reliance Power had a deal to make Bhutan’s largest solar power project. Since this news, the company’s shares have been seeing this continuously.
The company will make Bhutan’s largest solar power project
This project of Reliance Power 500 MW (MW) will develop in a 50:50 joint venture in collaboration with the Bhutan company. It will cost around 2000 crores. This project will be the biggest private sector foreign direct investment (FDI) in the solar sector of Bhutan.
Reliance Power has signed a term sheet with Bhutan -based Green Digital Private Limited (GDL) owned by Bhutan -based Druk Holding and Investments Limited (Dhi). This project will be completed in a phased manner in the next 24 months.
Reliance Power is a major company in power generation and distribution sector. It is part of the Reliance Group led by Anil Ambani.
Electricity will be sold to green digital
The company said in a statement, “Reliance Power’s Total Clean Energy Pipeline is on 2.5 GW Peak (GWP) in the solar segment, which makes it the largest company in India in the Integrated Solar and Battery Energy System System (BESS) segment.”
The company said that electricity will be sold to green digital through a long-term agreement. Reliance Power has started searching for contractors through a competitive bidding process to start the project work.
The subsidiary company received solar energy order
Reliance NU Energe, a subsidiary of Reliance Power, had won the largest allocation in SJVN’s tariff -based competitive bidding process in the past. The company received the allocation of 175 MW/700 MWH battery energy stores system with 350 MW solar production capacity.
Competitive bidding process of government company SJVN Limited is a structured and transparent method. It is used to purchase goods, services or developers for renewable energy projects such as solar, wind-lore hybrid or hydropower projects.
The historic solar investment in Bhutan, reflects the strategic focus on the expansion of its renewable energy portfolio of the Reliance Group.
Reliance Power Profit for ₹ 126 crore in the fourth quarter
The company recorded a consolidated net profit of ₹ 126 crore for the January-March quarter of FY 25. In the same quarter of last year, the company had a loss of ₹ 397.56 crore. The company’s profit has increased due to the reduction in expenses.
The total income during the quarter declined to Rs 2,066 crore as compared to Rs 2,193.85 crore in the same period last year. Nevertheless, a huge reduction of Rs 2,615.15 crore to Rs 1,998.49 crore in total expenditure helped the company in the profit.
Reliance Power is part of Anil Ambani -led group
Reliance Power is a major company in power generation and distribution sector. It is part of the Reliance Group led by Anil Ambani. Its portfolio includes thermal (coal and gas), renewable (solar, wind and hydro) and battery energy storage system (BESS).
