Net up 6% at Rs 382 crore
Reliance Infra saw a net profit improvement of 6.9 per cent, despite sales dipping in the EPC segment. The company’s turnover dipped on lower revenues registered by its engineering, procurement and constructions (EPC) segment. Conceding that the order book was only about Rs 14,000 crore, CEO Lalit Jalan said the company was looking to R Power’s projects such as Krishnapatnam, Tilaiya and Sasan expansion to shore up its order inflows.
These orders are upwards of Rs 20,000 crore but there were issues associated with them that need to be cleared, he said.
R Infra’s power business revenues were Rs 3,602 crore (Rs 3,439 crore), while the EPC and contracts business was down at Rs 1,803 crore (Rs 2212 crore). The infrastructure business was at Rs 111 crore (Rs 77 crore).
On the Delhi metro, he said repair works were nearly complete and the company expected the line to be opened shortly after mandatory clearances. On losses incurred, he said: “We are committed to safe and quick start-up of the line, while keeping in mind that we have to take care of our shareholders’ interests.”
On the Mumbai Metro, he said it was expected to be ready by the end of the current fiscal as 99 per cent of the civil work was complete.
On the transmission business, he said the Western Region System Strengthening project would be completed by the end of this fiscal.
Six of the nine lines are revenue generating. There was some issue regarding right of way near Pune, he added.
In power generation, the company generated 1,296 million units in the quarter.
Jalan said eight of the 11 road projects worth 12,000 crore were generating revenues and two more would be ready by March.
The company earned Rs 111 crore from toll roads in the second quarter.
On Tuesday, the R Infra scrip was marginally down at Rs 478.50, on BSE.