Shares of RatanIndia Power Limited made investors happy on Wednesday. The company’s shares saw a rise of about 8%, as the company has earned a profit of Rs 4.33 crore in the third quarter of the current financial year. This is the same company which had suffered a huge loss of Rs 587 crore in the same quarter last year.
Sales declined, but profits won hearts
The company’s total sales declined by 9.1% to Rs 733 crore, compared to Rs 806 crore at the same time last year. However, profits caught everyone’s attention. EBITDA i.e. operating income also declined by 47.4% to Rs 90.3 crore compared to the previous quarter, but the company managed to maintain its position.
Effect of power plant functioning
The company said that the plant load factor (PLF) has improved since the restart of the power plant in December 2020. However, the second and third quarters saw a slight decline in production due to repair and annual maintenance of units.
stock market boom
On Wednesday, RatanIndia Power shares rose 7.97% to Rs 13.55, its highest level since January 6. However, later it was trading at Rs 12.84, which is still a gain of 2.31%.
The stock has gained 29.05% in the last 12 months, making it an attractive option for investors.
The stock traded at 2.5 times its 30-day average during the day. The Relative Strength Index (RSI) remains at 50, which suggests that the stock is currently in a balanced position.