ADAG stocks plunge up to 20% after RPower posts loss of Rs 3,559 cr for Q4

Shares of Anil Dhirubhai Ambani Group (ADAG) companies came under heavy pressure on Monday with Reliance Power (RPower) hitting a new low of Rs 4.94, tumbling 20 per cent on the BSE after the company reported a huge loss of Rs 3,559 crore for the March 2019 quarter, due to impairment and higher finance costs. The company had posted a net profit of Rs 189 crore in the year-ago quarter.

The company reported Rs 4,170 crore as impairment loss, of which Rs 1,017 crore was reduced through withdrawal from its general reserves.

Reliance Infrastructure (RInfra) hit a fresh 15-year low of Rs 67, down  9 per cent, extending its past 24 per cent fall on the BSE, after the company postponed its board meeting for the second time due to delay in Reliance Power results.

The group, which is under financial stress and has delayed debt repayment, is also not keeping its dates of announcing the March 2019 quarter financial results for Rnfra and RPower.

Both companies were to declare their results on June 7, but did not. RPower announced its March results the next day and said, “The meeting of the audit committee commenced on June 7 and got adjourned to June 8, 2019. Consequently, the board meeting of the company also stood adjourned to June 8.”

Earlier, the board of directors of RInfra scheduled to meet on May 29, 2019 to approve audited financial results for the quarter and financial year ended March 31, 2019, was postponed to June 7, 2019, due to postponement of board meeting of the RPower, its Associate Company.

On Saturday, RInfra informed the stock exchanges that the adjourned meeting of the board of directors of the company will now be held on Friday, June 14, 2019.

“RPower has approved its financial statements today June 08, 2019, which will now get consolidated in the company financial statements. The Audit Committee of RInfra has therefore sought time to review and incorporate the financials of RPower in the company’s consolidated financial statements,” the company said.

Among the other ADAG stocks, Reliance Naval and Engineering (down 13 per cent at Rs 6.26), Reliance Home Finance (10 per cent at Rs 17.10), Reliance Capital (9 per cent at Rs 91) and Reliance Communications (4 per cent at Rs 1.76) were down up to 13 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.63 per cent at 39,864 points.

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