Rattanindia Power Net Profit Nosedives To ₹125.94 Crore In March Quarter

New Delhi: Rattanlndia Power on Wednesday reported a sharp fall in consolidated net profit to Rs 125.94 crore in the March quarter due to high base effect.

The company had posted Rs 10,665.75 crore net profit in the year-ago period, largely driven by an exceptional gain of Rs 10,635 crore in the last quarter of FY24, RattanIndia said in a regulatory filing.

The company's total income rose to Rs 1,028.61 crore in January-March quarter, from Rs 995.73 crore in Q4 FY24.

The filing also mentioned that the assets and liabilities of Sinnar Thermal Power Ltd (STPL) had been de-recognized in the consolidated financial statements for the January-March quarter and year ended March 31, 2024 recorded "a resultant gain on loss of control of Rs 10,658.88 crore".

STPL was an erstwhile wholly-owned subsidiary up to January 18, 2024. On January 19, the NCLT-New Delhi had dismissed STPL's appeal, and had reinitiated the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).

Consequently, the powers of the Board of Directors of STPL were suspended and the management of STPL was vested with the Resolution Professional appointed under the provisions of IBC.

"Accordingly, the assets and liabilities of STPL had been de-recognized at their respective carrying values as on January 18, 2024, in accordance with the requirements of Ind AS 110 - Consolidated Financial Statements and the resultant gain on loss of control of Rs 10,658.88 crore was recorded, that had been presented as an 'exceptional item' in the consolidated financial results for the quarter and year ended March 31, 2024," the company said.

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