Shares of Anil Ambani-led Reliance Power cracked nearly 21% in intraday trade on Monday after the company revealed a net loss of Rs 3,575.38 crore during the March quarter compared to a net profit of Rs 189.21 crore in the same quarter last year.
Reliance Infrastructure Ltd. also plunged in 10% within trade after the company delayed its earnings release.
Reliance Power’s profit took a beating due to the impairment and higher finance costs incurred by the Mumbai-based power company. It reported Rs 4,170.19 crore as impairment loss, of which Rs 1,017.02 crore was reduced through withdrawal from its general reserves. Audit reports have stated that the annual losses could have been higher had the company not withdrawn proceeds from its general reserves.
Reliance Power reported a loss of Rs 2,832.20 crore against a profit of Rs 847.09 crore in the financial year 2017-18.
The company posted total income of Rs 1,687.86 crore during the fourth quarter compared to Rs 2,321.68 crore a year ago.
Meanwhile, Reliance Infrastructure has delayed earnings release for the March quarter for a second time. Earlier, Reliance Infrastructure’s quarterly result announcement was scheduled for 30 May but the company deferred it to 7 June. The company has gain failed to meet the revised date and has now postponed it to 14 June.
“The board of the company will meet on 14 June to consider and approve audited financial results for the quarter and financial year ended March 31, 2019 and dividend, if any,” Reliance Infrastructure said in an exchange filing.
At 11:28am, shares of Reliance Power were trading at Rs 5.30, down by 13.8%. Meanwhile, Reliance Infrastructure was down by 9.2%, at Rs 67.15 in BSE.
Stocks of other Reliance Group firms owned by Anil Ambani also witnessed a sharp decline in Monday’s trade. Reliance Capital and Reliance Home Finance lost 9% each, Reliance Communications fell 2.7%, while Reliance Naval and Engineering tumbled over 13%.