Reliance Infrastructure on Wednesday said that the listing of its infrastructure investment trust (InvIT) has been delayed due to the muted performance of the first two InvITs – IRB InvIT Fund and India Grid Trust – that listed earlier this year on the Bombay Stock Exchange (BSE).Lalit Jalan, CEO, RInfra, said, “We had a very good response but because the first two InvITs did not list well, our investors took a step back. They wanted the InvITs to stabilise first because nobody wants to take a mark to market loss. We now expect to bring it to the public in the current quarter.”
Jalan added that the company is also exploring an option to launch a possible second InvIT which will own the Mumbai power distribution business. The company was earlier in discussions with Canadian pension fund manager PSP Investments to hive off 49% stake in the power business.
“We continue to explore all possibilities but it could take up to a year,” Jalan said. Meanwhile, RInfra reported a 23.9% dip in consolidated net profit year-on-year, to Rs 334 crore, for the three months ended June 30, 2017. Revenue increased 4%, y-o-y, to Rs 7,848 crore.
Earnings before interest, tax, depreciation and amortization (EBITDA), increased 14% y-o-y, to Rs 2,303 crore while operating margins stood at 29%, up 200 bps. However, other income dropped 26%, y-o-y, to Rs 526.12 crore. Interest expenses rose 18% y-o-y, to Rs 1,491 crore. The company’s order book stood at Rs 5,700 crore but RInfra is expecting to win an order shortly from the Mumbai Metropolitan Region Development Authority (MMRDA) valued at Rs 1,200 crore for constructing two new metro lines in the city, taking its order book to Rs 7,000 crore.
RInfra’s total consolidated debt stood at Rs 29,000 crore at the end of June 30, 2017. Jalan said the debt is expected to reduce to about Rs 20,000 crore. The company expects to reduce debt by Rs 2,000 crore after the completion of the sale of its western region system strengthening scheme (WRSS) transmission assets to Adani Transmission, and by Rs 4,700 crore once it receives the funds that it has won in arbitration against the Delhi Metro Rail Corporation (DMRCC). The company is also expecting to mop up Rs 2,500 crore from its RInfra InvIT Fund.