Did Reliance Power See a Revenue Decline in Q4 FY25?
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Synopsis
Discover how <b>Reliance Power</b> has navigated the turbulent waters of revenue decline while achieving remarkable profit recovery. This article delves into the company's performance metrics, financial strategies, and future outlook, providing insights into its resilience in the energy sector.
Key Takeaways
- Revenue decline of 1% to Rs 1,978 crore.
- Total income fell by 5.83% to Rs 2,066 crore.
- Net profit of Rs 125.6 crore reported.
- Expenses dropped to Rs 1,998.49 crore.
- EBITDA surged to Rs 589.8 crore, an increase of over 1,100%.
Mumbai, May 10 (NationPress) Reliance Power Limited, under the leadership of Anil Ambani, has disclosed a decrease in both revenue and total income for the fourth quarter ending on March 31 (Q4 FY25).
As per a regulatory announcement, Reliance Power's operational revenue fell by 1 percent to Rs 1,978 crore, down from Rs 1,997 crore in the same quarter of the previous fiscal year (FY24).
Total income also saw a drop of 5.83 percent, decreasing to Rs 2,066 crore from Rs 2,193.85 crore during the corresponding period last year.
In spite of the revenue decline, the company posted a net profit of Rs 125.6 crore for the March quarter, marking a significant turnaround from the net loss of Rs 397.6 crore recorded in the same quarter last year.
On the operational front, the company exhibited notable performance improvements. Total expenses fell to Rs 1,998.49 crore during the reviewed quarter, compared to Rs 2,615.15 crore in the same quarter of the previous fiscal.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged over 1,100 percent, reaching Rs 589.8 crore from merely Rs 48.8 crore a year prior.
The EBITDA margin also witnessed a substantial increase to 29.8 percent, compared to just 2.4 percent in the same timeframe last year.
Reliance Power has also made commendable strides in enhancing its financial standing.
The company successfully managed total debt obligations amounting to Rs 5,338 crore over the past year, reducing its debt-to-equity ratio to 0.88:1 from 1.61:1 in FY2024, placing it among the lowest in the industry.
As of March 31, its net worth stood at Rs 16,337 crore, as reported in its exchange filing.
The results were announced after market hours on Friday, with Reliance Power shares closing at Rs 38.79, reflecting a 1.39 percent increase or Rs 0.53 on May 9 on the National Stock Exchange (NSE).
Point of View
It is evident that Reliance Power's recent financial results reflect both challenges and resilience. The company has shown a strong capacity for recovery, which is critical in today’s fluctuating market environment. Maintaining a focus on operational efficiency will be essential as they navigate future hurdles.
NationPress
09/06/2025
Frequently Asked Questions
What caused the decline in Reliance Power's revenue?
The decline in revenue can be attributed to various market factors affecting operational performance and overall economic conditions.
How did Reliance Power manage to report a profit despite revenue drops?
Reliance Power achieved profitability through significant reductions in total expenses and a remarkable increase in EBITDA.
What is the current debt-to-equity ratio of Reliance Power?
The debt-to-equity ratio of Reliance Power has improved to 0.88:1, reflecting better financial health.
What is the significance of the EBITDA margin improvement?
The EBITDA margin improvement to 29.8 percent indicates enhanced operational efficiency and profitability.
How did Reliance Power's stock perform recently?
Reliance Power's shares closed at Rs 38.79, showing a 1.39 percent increase on May 9.
