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Reliance Infrastructure Q3 net profit soars 78%

Feb 07 2013, 14:52 IST
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Company had reported a net profit of Rs 408 cr in the corresponding quarter of previous year. (Reuters) Company had reported a net profit of Rs 408 cr in the corresponding quarter of previous year. (Reuters)
SummaryCompany had reported a net profit of Rs 408 cr in the corresponding quarter of previous year.

Reliance Infrastructure (Rinfra) today reported 78 per cent jump in consolidated net profit for the December quarter at Rs 728 crore, driven by a one-time gain of Rs 418.34 crore from sale of assets.

On a standalone basis, net profit grew 58.57 per cent to Rs 659.37 crore in the third quarter ended December 31, against Rs 415.82 crore a year ago.

The rise in profit is a reflection of the 'exceptional gains' of Rs 418.34 crore the company made from selling 5.31 crore equity shares of Reliance Power (RPower), its Chief Executive Lalit Jalan said here.

Following this, RInfra's interest in RPower has come down to 36.52 per cent from 38.41 per cent earlier, he said.

Shares of RInfra closed 2 per cent down at Rs 528.20 on the BSE, whose index Sensex closed flat today.

Total consolidated operating income stood at Rs 5,296 crore against Rs 6,160 crore a year ago, while on a standalone basis, revenue stood at Rs 3,455.21 crore in Q3 against Rs 4,507.24 in the corresponding quarter last year.

"Our infrastructure business is a growth business. Most of our projects are coming on stream and the effect of this is reflected on our balance-sheet and profit and loss account. The revenues for the quarter grew nearly 80 per cent y-o-y and we will see this trend continuing even in the next 6-7 quarters," Jalan said.

In its infrastructure portfolio, RInfra is developing 11 road projects of which eight are operational and generating revenues. Another two will get operational in the current quarter.

He said the Delhi Airport Metro line, part of Rinfra's business, has resumed operations after being shut for nearly six months, while the Mumbai Metro project is likely to get operational in the middle of FY14.

However, RInfra's EPC business, which contributes a large part of the company's revenues, witnessed a decline to Rs 1,840.28 crore in Q3 from Rs 2,939.88 crore a year ago.

However, Jalan played down the drop, saying "last year was a stupendous year of growth for our EPC business. We used to be operating typically in the Rs 3,000 crore bracket annual turnover in EPC."

"In FY12 we witnessed a 300 per cent increase in revenue. To sustain that number and grow at similar rate is not possible given the current scenario. So, we will close the year at Rs 7,000 crore, which will be lower compared to last year but at CAGR level it will be

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