The July–September quarter of current fiscal year saw Reliance Power report a consolidated net profit of Rs 2,878.15 crore.

In the quarter that concluded on September 30, 2023, the firm recorded a net loss of Rs 237.76 crore.

The company’s overall revenue decreased from Rs 2,116.37 crore in the same time last year to Rs 1,962.77 crore in the current quarter.

The business said in a regulatory statement on Tuesday that it had received Rs 3,230.42 crore via the deconsolidation of a subsidiary.

When a subsidiary’s equity, liabilities, and assets are no longer represented in the parent company’s financial position, the subsidiary is said to have deconsolidated.

Reliance Power paid Rs 3,872 crore in guarantor obligations for its subsidiary Vidarbha Industries Power Ltd (VIPL) during the July–September quarter.

“… The entire obligations of the Parent Company (Reliance Power) as a guarantor on behalf of VIPL stands fully settled resulting in the release and discharge of corporate guarantee, undertakings, and all obligations and claims thereunder in relation to the outstanding debt of VIPL amounting to Rs 3,87,204 lakh,” the regulatory filing stated.

As a result, it said, VIPL would no longer be a Reliance Power subsidiary as of September 17, 2024.

According to the company, all of its disagreements with CFM Asset Reconstruction Private Limited (CFM) have been resolved.

“Further, Section 7 of the Insolvency and Bankruptcy Code, application filed by the CFM Asset Reconstruction Private Ltd stands dismissed as the application was withdrawn on September 25, 2024,” the statement said.

VIPL’s revenue and costs are included in the Group’s consolidated financials until September 17, 2024, in accordance with Ind AS 110 “Consolidated Financial Statements”.

“… The Group had derecognized its share in VIPL’s net liabilities on September 30, 2024, recognizing a gain of Rs 3,23,042 lakh as an exceptional item,” the document said.

The top coal resource and power generating firm in India’s private sector is Reliance Power Ltd., a division of the Reliance Group.

With an operational portfolio of 5,300 megawatts, the firm has one of the biggest power project portfolios in the private sector, focused on coal, gas, hydro, and renewable energy.