Reliance Infrastructure Q1 profit rises 7% to Rs439 crore
New Delhi: Reliance Infrastructure Ltd (R-Infra) on Tuesday reported a 7.21% rise in consolidated net profit at Rs.438.80 crore for the quarter ended June.
The company clocked a net profit of Rs.409.27 crore for the same quarter in 2015-16. The company said it recorded a net profit of Rs.439 crore “in spite of defence business loss of Rs.50 crore in Q1 2016-17”.
R-Infra recorded an almost total income of Rs.7,640 crore during the quarter under review as against Rs.7,644 crore in the previous fiscal. As on 30 June 2016, “the consolidated net worth of the company stood at Rs.25,920 crore and is conservatively financed with debt to equity of 1.3x”.
The Mumbai distribution unit under its power business recovered “Rs.241 crore arrears in Q1 2016-17, totally recovered Rs.2,488 crore till date” and added 16,800 consumers during the quarter.
The company said discussion is in “advanced stage with PSP Investments of Canada for 49% stake sale in Mumbai power business”.
As far as power distribution in Delhi is concerned, it added 46,200 consumers during the quarter and all projects are commissioned and revenue generating. Its EPC (engineering, procurement and construction) business has an order book of Rs.2,720 crore and earned revenue of Rs.723 crore in the April-June quarter.
The company said it is “targeting opportunities worth Rs.2 trillion planned by the government across power, roads, railways, defence, ports and mega infrastructure projects” and has already submitted bids worth Rs.15,000 crore in the last three months.
In the infrastructure space, R-Infra said the road business earned a revenue of “Rs.259 crore in Q1 2016-17, an increase of 27% yoy (year-on-year)” and all 11 road projects of 1,000km are now generating revenue.
According to R-Infra, discussions are in advanced stage to monetize the entire road portfolio. The company said Mumbai Metro earned a revenue of Rs.55 crore in the June quarter, an increase of 12% over the same period last fiscal. Over 21 crore commuters travelled with 100% train availability.
With reference to the cabinet decision on arbitration, R-Infra said it welcomed “the CCEA initiative to revive the construction sector”. It won arbitration award for two road projects—NK Toll Road and DS Toll Road worth Rs.170 crore. “Over Rs.14,000 crore is under advanced stage of arbitration,” it said.
(Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.)