Reliance Infra’s Q1 net profit down 12 percent

Mumbai, Aug 12 (IANS) Reliance Infrastructure on Wednesday reported a decline of 12.44 percent in its consolidated net profit for the first quarter (Q1) of the current fiscal.

The company’s consolidated net profit for Q1 stood at Rs.401 crore from Rs.458 crore in the corresponding quarter of the last fiscal.

According to the company, the Q1 net profit of Rs.401 crore was achieved despite Mumbai Metro and cement business incurring a loss of Rs.50 crore and Rs.39 crore respectively.

However, the net profit for the period under review would have been higher by 5 percent at Rs.490 crore from Rs.458 crore, prior to Mumbai Metro and cement business losses.

The company’s total income for the quarter ended June 30, 2015 grew by 6 percent to Rs.4,829 crore from Rs.4,548 crore in the corresponding quarter of 2014-15.

The company’s consolidated net worth stood at Rs.27,389 crore at the end of the quarter under review.

The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15 percent to Rs.1,241 crore.

Among other highlights, the company’s power distribution business added 82,400 new customers in the metros of Delhi and Mumbai in Q1 2015-16.

The company maintains its lead as being the largest private sector distributor of power in the country, serving 65.3 lakh consumers.

In addition, the company’s power distribution business in Mumbai recovered Rs.236 crore arrears in the period under review.

For the infrastructure segment, the company said that over 97 million commuters travelled in the Mumbai Metro within its first year of operations.

The company’s road sector earned revenue worth Rs.164 crore in the quarter ended June 30, 2015.

The company said that 10 out of 11 road projects are revenue generating and that the 11th road project will be operational in the third quarter of FY16.

In the cement business, the company earned revenue worth Rs.357 crore in Q1 from 5.8 million tonne per annum (MTPA) operational capacity.

The company’s EPC (engineering, procurement and construction) business earned a revenue of Rs.629 crore in the quarter under review.

Its order book stood at Rs.4,218 crore as on June 30, 2015.

The company informed that its plans to acquire Pipavav Defence and Offshore Engineering has been approved by Securities Exchange Board of India (SEBI) and Competition Commission of India (CCI).

However, the plans are still awaiting approval from Gujarat Maritime Board.

The company is looking to acquire Pipavav to pursue growth opportunities in the defence sector.

The company acquisition plans envisages buying 18 percent of promoters stake accompanied by an open offer for 26 percent of share capital.

The company’s scrip at the Bombay Stock Exchange (BSE) declined by 5.30 percent at Rs.380.70 from its previous close of Rs.402 per equity share.

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