Reliance Infrastructure today posted a marginal increase in consolidated net profit at Rs 431.19 crore for the three months to September, from Rs 426.60 crore a year ago, due to 54 per cent slump in revenues from its engineering business.
The Anil Ambani Group’s flagship company attributed the lower growth in net income to the losses (Rs 57 crore) from its recently-launched metro services in the city, excluding which net income would have been up 14 per cent.
Income from operations declined by 18.4 per cent during the quarter to Rs 4,057.95 crore from Rs 4,977.28 crore in the comparable quarter last fiscal.
“Apart from the decline in revenues, the marginal increase in the profit will be attributed to the loss on the Mumbai metro business which commenced operations in July,” chief executive MS Mehta told reporters here.
“If we separate losses from the metro operations, profit for the quarter would be 14 per cent higher, at around Rs 488 crore, than the corresponding quarter,” he said.
On the decline in income, Mehta said, “The dip in revenues is a reflection of the reduced revenues from our engineering business as most of the projects are now getting completed. However, we expect the income from the infrastructure business to contribute significantly to the revenues in the coming period after all our road projects become operational and start generating revenues.”
The income from its EPC business declined by nearly 54 per cent to Rs 576.55 crore from Rs 1,252.57 a year ago. The EPC division has an order book of Rs 6,106 crore as of the end quarter.
“For the EPC business, we are currently focusing on in-house contracts, mainly from Reliance Power, which is likely to bid out for the remaining phase of Sasan ultra mega power projects and the Tilaiya UMPP,” he said.
RInfra’s income from the power segment, its core business, came down to Rs 3,243.85 crore during the quarter from Rs 3,501.49 crore and Mehta attributed this to “the reduction in our stake in the Delhi discom. We reduced our 49 per cent stake in BSES Rajdhani Power and BSES Yamuna Power to 28.82 per cent.”
The company recovered Rs 221 crore arrears in the Mumbai distribution area during the quarter. RInfra also received an approval from the Delhi Electricity Regulator to recover Rs 2,100 crore arrears, including carrying cost, in the state discom.
Its toll income reduced to Rs 146 crore during the quarter, mainly because the company diluted its stake in three of its subsidiaries — SU Toll Road, TD Toll Road and TK Toll Road from 100 per cent to 49 per cent.