RInfra Q1 net flat at Rs 415 cr; total income marginally up
Reliance Infrastructure (RInfra) on Tuesday reported a marginal growth in net profit at Rs 415.2 crore in the first quarter ended June 30 as against Rs 411.97 in the year-ago period.
Total income stood at Rs 5,452.45 crore as against Rs 5,383 crore in the corresponding quarter of previous year.
"There has been an improvement in revenues from our electricity and infrastructure businesses. We added nearly 78,000 customers, both in our Delhi and Mumbai distribution networks," RInfra chief executive Lalit Jalan said.
RInfra's road projects earned a revenue of Rs 162 crore in the first quarter of the current fiscal, while the electricity business clocked a revenue of Rs 3,584.19 crore against Rs 3,491.77 crore in the same period last fiscal.
"The infrastructure business is poised to grow rapidly. By the end of this fiscal year, all the 11 road projects will be revenue operational," Jalan said.
He said the company was also looking at projects like elevated rail corridor, airport plans in Chennai and Kolkata as well as metros in Jaipur and Bangalore.
It expects to bag large EPC (Engineering, Procurement and Construction) orders during the year. "We expect to get orders from RPower for its 3,960 MW project in Chitrangi (MP) and 4,000 mw projects in Tilaiya (Jharkhand), Sasan (MP) and 700 mw Tato hydro project (in Arunachal Pradesh)," Jalan said.
The company's order-book for EPC business stood at Rs 8,890 crore as on June 30. "By the end of this fiscal, all the projects under implementation will be revenue operational." Asked about the termination of concession aggreement with the Delhi Metro Railway Corporation (DMRC), Jalan said "the operations of Reliance Metro Airportline were handed over to DMRC with effect from July 1.
"The termination was owing to DMRC's failure to cure substantial defects in civil structure designed and built by them and on account of 'material breach' and 'event of default'," he said. As per terms of the agreement, DMRC is liable to pay us a termination payment of around Rs 3,000 crore, Jalan said.
"The matter has been referred to arbitration, and as legally advised, the claims for the termination payment are considered fully enforceable, and the parent company is confident of recovering its entire investment in DAMEPL." During Q1, the company was also involved in the power sector. It generated 1,311 million units in the quarter and traded 1,281 million units in the same period.
RInfra is also developing two cement plants of 5 million tonnes in Maharashtra and Madhya Pradesh. Maihar unit in MP is slated to be commissioned in the current year.
Jalan said the company was planning to extend its expertise in power and infrastructure space.
"We are already providing consultancy to 8 state discoms. We want to further expand our reach to other states as well as provide consultancy services in smart grid pilot project. We can also provide our expertise in the distribution substation and automation space," the CEO added.