Reliance Power's Q1 Financial Report Shows Steady Performance, Cash Reserves Reach Record High

Reliance Power, a midcap company in the power industry, recently announced its financial results for the quarter ending June 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Reliance Power's performance for the quarter has remained flat. However, there has been a significant improvement in the company's score, which has increased from -12 to 1 in the last three months.

One of the factors contributing to this improvement is the company's cash and cash equivalents, which have reached a record high of Rs 917.60 crore in the last six half-yearly periods. This indicates an improvement in short-term liquidity for Reliance Power.

Another positive aspect of the financial report is the company's debtors turnover ratio, which has been the highest at 4.80 times in the last five half-yearly periods. This shows that Reliance Power has been able to settle its debtors at a faster rate.

However, the report also highlights a potential concern for the company. The non-operating income for the quarter has been the highest at Rs 197.20 crore in the last five quarters. While this may seem like a positive development, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, Reliance Power's financial performance for the quarter has been steady, with some positive and negative aspects. Investors are advised to hold their position in the company's stock, as recommended by MarketsMOJO.