Reliance Infrastructure today reported over 12.39 per cent drop in its net profit at Rs 400.91 crore for the April-June quarter due to factors including higher finance cost and statutory payments related to Delhi Airport Metro.
The company, led by Anil Ambani, had clocked a net profit of Rs 457.62 crore in the first quarter of 2014-15.
Reliance Infrastructure’s total operating income during the quarter rose to Rs 4,336.83 as against Rs 4,150.89 crore in the same period last year, it said in a filing to BSE.
Its total expenditure during the quarter was at Rs 3,835.26 crore as against Rs 3,607.51 crore in the corresponding period, a year ago.
Segment-wise, power business revenue declined to Rs 3,147.41 crore as against Rs 3,370.86 crore a year-ago.
EPC and contract business revenue during the quarter went up to Rs 628.83 crore as against Rs 589.69 crore in the corresponding quarter previous year.
Infrastructure business garnered a revenue of Rs 213.17 crore while Rs 356.50 crore came from the cement business.
During the quarter, the company incurred higher finance costs which went up to Rs 643.73 crore from Rs 480.75 crore.
The company said, “Delhi Airport Metro Express Pvt Ltd (DAMEPL), a SPV of the parent company, had terminated the concession agreement with Delhi Metro Rail Corporation (DMRC) for the Delhi Airport Metro Line, on account of material breach and event of default under the provisions of the concession agreement by the DMRC.”
The operations were taken over by the DMRC with effect from July 1, 2013 and as per the concession agreement, DMRC is now liable to pay DAMEPL a termination payment which is estimated at Rs 2,823 crore as it was done as per DMRC’s default, the company said.
“The matter has been referred to arbitration… Pending the final outcome of arbitration, the parent company continues to fund the statutory and other obligations of DAMEPL post taken over by DMRC and accordingly has funded Rs 156.85 crore during the quarter ended June 30, 2015,” it said.
The total investment made by the parent company in DAMEPL up to June 30 amounts to Rs 1,858.95 crore, it said adding it has written off Rs 1,258.20 crore out of above investment but as “legally advised, DAMEPL’s claim for the termination payments are considered fully enforceable”.
The group also said that it has opted for amortising the foreign exchange fluctuation gain/loss on the long-term foreign currency monetary items over the balance life of depreciable assets/long term monetary aspects.
“The group has carried forward unamortised portion of net gain of Rs 252.12 crore to foreign currency monetary items translation difference account as on June 30, 2015,” it said.
RInfra is among the largest infrastructure companies, developing projects through various special purpose vehicles in roads, metro rail and cement among others.
The shares of the company today closed at Rs 380.70 per scrip on BSE today, down 5.30 per cent.