The logo of Reliance Power
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New Delhi: Reliance Power has posted a consolidated net profit of Rs 2,878.15 crore in the July-September quarter of this financial year.
The company had reported a net loss of Rs 237.76 crore in the quarter ended September 30, 2023.
Total income of the company dipped to Rs 1,962.77 crore in the quarter under review, from Rs 2,116.37 crore in the same period a year ago.
The company has gained Rs 3,230.42 crore on deconsolidation of a subsidiary, the company said in a regulatory filing on Tuesday.
Deconsolidation of a subsidiary occurs when assets, liabilities, and equity associated with the subsidiary are no longer reflected in the parent company's financial position.
During the July-September quarter, Reliance Power has settled Rs 3,872 crore guarantor obligations for its subsidiary Vidarbha Industries Power Ltd (VIPL).
"... 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 said.
Accordingly, VIPL ceases to be a subsidiary of the Reliance Power with effect from September 17, 2024, it added.
The firm said it has settled all disputes with CFM Asset Reconstruction Private Limited (CFM).
"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Bankruptcy Code, application filed by the CFM Asset Reconstruction Private Ltd stands dismissed as the application was withdrawn on September 25, 2024," the filing added.
As per Ind AS 110 "Consolidated Financial Statements", VIPL's income and expenses are recognized in the Group's consolidated financials up to September 17, 2024.
"... 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 filing said.
Reliance Power Ltd, a part of the Reliance Group, is India's leading private sector power generation and coal resources company.
The company has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro, and renewable energy, with an operating portfolio of 5,300 megawatts.