Reliance Power Performance
Fundamentals of Reliance Power
|P/E Ratio (TTM)||NA|
|Debt to Equity||1.6|
Financials of Reliance Power
|Dec 2022||Mar 2023||Jun 2023||Sep 2023|
|Profit before tax||-190.04||164.42||-223.97||-177.18|
|EPS in Rs||-0.86||-2.81||-0.79||-0.64|
About Reliance Power
Reliance Power Limited, previously known as Reliance Energy Generation Limited, is a subsidiary of the Reliance Anil Dhirubhai Ambani Group. It was established to undertake power projects in India and abroad. The company is promoted by Reliance Infrastructure, a private-sector power utility, and the Reliance ADA Group.
Reliance Power’s journey began in January 1995 when it was incorporated as Bawana Power Private Limited. Over the years, it underwent several name changes, including Reliance Delhi Power Private Limited in February 1995 and then Reliance Energy Generation Limited in March 2004. Finally, in July 2007, it adopted the name Reliance Power Limited.
Notably, when Reliance Power conducted its Initial Public Offering (IPO) in January 2008, it achieved a remarkable feat. On the very first day, it received bids totalling $27.5 billion, which was an astounding 10.5 times the available shares. This set a record for IPOs in India.
In 2010, Reliance Natural Resources merged with Reliance Power shortly after its IPO. As of March 2018, Reliance Power had a total of 50 subsidiaries.
Reliance Power’s power projects are strategically diversified in terms of location, fuel type, fuel source, and off-take. These projects are strategically situated close to fuel sources or areas with power demand. The company currently operates power generation assets with a combined capacity of nearly 416 GW.
The company’s portfolio of projects under development includes coal-fired projects supplied by reserves from captive mines and sources within India and abroad, gas-fired projects, and a dozen hydroelectric projects. Six of the hydroelectric projects are in Arunachal Pradesh, five in Himachal Pradesh, and one in Uttarakhand.
One of the notable projects in Reliance Power’s portfolio is the 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh. These Ultra Mega Power Projects (UMPPs) are a part of the Indian government’s initiative to partner with power generation companies to establish 4,000 MW projects, addressing the country’s power deficit.
Reliance Power, an Indian conglomerate, operates in various sectors: coal-based, gas-based, solar power, wind power, hydroelectricity projects, and coal mining. Here’s a brief overview of each segment:
- Coal-based Projects: Reliance Power’s coal-based projects include Sasan UMPP in Madhya Pradesh, Krishnapatnam UMPP in Andhra Pradesh, and Tilaiya UMPP in Jharkhand.
- Gas-based Projects: The company operates gas-based projects like the Samalkot Power Project in Andhra Pradesh, the Shahajahanpur Power Project in Uttar Pradesh, and the Dahanu Power Project in Maharashtra.
- Solar Power Projects: Reliance Power’s solar power projects encompass the Jaisalmer Solar Park, Bhadla Solar Park, and Awanthi Solar Park.
- Wind Power Projects: The company has wind power projects such as the Jaisalmer Wind Power Project, Chorwad Wind Power Project, and Thoothukudi Wind Power Project.
- Hydroelectricity Projects: Reliance Power’s hydroelectricity projects include the Loharinag Pala Hydroelectric Project in Uttarakhand and the Chamera III Hydroelectric Project in Himachal Pradesh.
- Coal Mining: Reliance Power conducts coal mining operations as part of the Sasan UMPP, utilising three captive coal mine blocks in Singrauli, Madhya Pradesh.
Subsidiaries of Reliance Power
Reliance Power has several subsidiaries and associate companies facilitating operations across the globe. These companies include:
- Sasan Power Limited: Sasan Power Limited is a wholly owned subsidiary of Reliance Power. It is a special purpose vehicle (SPV) formed to implement the 3,960 MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh. Sasan UMPP is one of the largest coal-fired power plants in India. It is also one of the first UMPPs to be commissioned in the country.
- Rosa Power Supply Company Limited: Rosa Power Supply Company Limited is a wholly-owned subsidiary of Reliance Power. It was formed to implement the 1,200 MW coal-based power plant in Uttar Pradesh. Rosa Power Plant is one of the most efficient coal-fired power plants in India. It is also one of the first coal-fired power plants in the country to use imported coal as fuel.
- Rajasthan Sun Technique Energy Pvt. Ltd: Rajasthan Sun Technique Energy Pvt. Ltd (RSTEPL) is a wholly owned subsidiary of Reliance Power. It is an SPV formed to implement the 125 MW solar power plant in Rajasthan. RSTEPL Solar Power Plant is one of the largest solar power plants in Rajasthan. It is also one of the most efficient solar power plants in the state.
- Anil Dhirubhai Ambani, Chairman
Anil Dhirubhai Ambani, known as ADA, is the Chairman of the Reliance Group, which includes Reliance Capital, Reliance Infrastructure, and Reliance Power. He founded the group in 2006, and within a decade, it became a leader in various sectors of India’s economy, such as telecommunications, power generation and distribution, infrastructure development, cement production, financial services, education, healthcare, and media and entertainment.
- Reliance Power’s renewable portfolio is entirely contracted in terms of power offtake, ensuring mitigation of demand risks. This points to a stable revenue stream from renewable sources.
- The government has implemented measures, including the Ujwal DISCOM Assurance Yojana (UDAY), to improve the financial health of electricity distribution companies (DISCOMs). This can be significant for Reliance Power Limited in terms of ensuring payment security and increased demand for power.
- The lack of adequate domestic gas supply has adversely affected the viability of gas-based power plants, including those with a capacity of nearly 25 GW. This highlights the challenges in the gas-based power generation sector.
- The implementation of new emission norms for coal-based power plants requires additional capital expenditure (CAPEX). The government’s directive to consider these changes as a “Change in Law” and the need for financing underline potential financial implications for the company.
- The government’s emphasis on green growth, as seen in the budget, including schemes like the Green Hydrogen Mission and energy transition, presents opportunities and challenges for Reliance Power Limited in aligning with these initiatives for future growth.
- Sasan Ultra Mega Power Project recorded a high Plant Load Factor (PLF) of 85.80% during the year under review. This high PLF is indicative of efficient operations and utilisation of the power plant’s capacity. Rosa Power Project witnessed a notable plant availability of 85.23% during the financial year 2023, underscoring its consistent operational performance.
- Both Sasan and Rosa Power Projects have secure, long-term Power Purchase Agreements in place, offering revenue predictability and stability. This ensures a steady revenue stream for an extended period.
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What is the Share price of Reliance Power (RPOWER)?
Can I buy Reliance Power (RPOWER) shares?
How do I buy Reliance Power (RPOWER) from Angel One?
- Direct investment: You can buy Reliance Power (RPOWER) shares by opening a Demat account with Angel One.
- Indirect investment: The indirect method involves investing through ETFs and Mutual Funds that offer exposure to Reliance Power (RPOWER) shares.
Is Reliance Power a Debt free Company?
No, Reliance Power is not a debt free company.
What is the main business of Reliance Power?
The main business of Reliance Power is to construct, develop, and operate several power projects approximating 6000 MW generation capacity both domestically and internationally.
Who are the promoters of Reliance Power?
The top promoters of Reliance Power include Reliance Infrastructure Limited, Reliance Project Ventures And Management Private Limited, Reliance Wind Turbine Installators Industries Private Limited, Reliance Capital Limited, Kokila D Ambani, Anil D Ambani, Tina A Ambani, Jai Anmol A Ambani, and Reliance Innoventures Private Limited.
What are the Subsidiaries that comes under Reliance Power?
Some of the subsidiaries that come under Reliance Power are Sasan Power Limited (SPL), Maharashtra Energy Generation Limited (MEGL), Rosa Power Supply Company Limited (RPSCL), Vidarbha Industries Power Limited (VIPL), Siyom Hydro Power Private Limited (SHPPL), Tato Hydro Power Private Limited (THPPL), and Chitrangi Power Private Limited (CPPL).