Mumbai, Nov 4: Reliance Infrastructure on Wednesday reported an almost five percent increase in its consolidated net profit for the second quarter (Q2) of the current fiscal.The company’s consolidated net profit for Q2 stood at Rs.451 crore from Rs.431 crore in the corresponding quarter of the last fiscal. (read:Whirlpool of India Q2 net down 7% to Rs 37.60 crore )
According to the company, the Q2 net profit of Rs.451 crore was achieved despite Mumbai Metro and the cement business incurring a loss of Rs.49 crore and Rs.50 crore, respectively.However, the net profit for the period under review would have been higher by 16 percent to Rs.501 crore, prior to cement business losses.The company’s total income for the quarter ended September 30, 2015 grew by eight percent to Rs.4,841 crore from Rs.4,487 crore in the corresponding quarter of 2014-15.
The company’s consolidated net worth stood at Rs.27,840 crore at the end of the quarter under review.The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 12 percent to Rs.1,295 crore.Among other highlights, the company’s power distribution business added 89,300 new customers in the metros of Delhi and Mumbai in Q2 2015-16.
The company maintains its lead as being the largest private sector distributor of power in the country, serving 66 lakh consumers.In addition, the company’s power distribution business in Mumbai recovered Rs.227 crore arrears in the period under review. For the infrastructure segment, the company said that its Mumbai Metro project earned revenues worth Rs.54 crore in the quarter under review.
The company’s road sector revenue grew by eight year-on-year (YoY) worth Rs.158 crore in the quarter ended September 30, 2015.The company said that 10 out of 11 road projects are revenue generating and that the 11th road project will be operational in the third quarter of FY16. Furthermore, the infrastructure major pointed out that all its toll plazas have been equipped with electronic toll collection (ETC) system.
In the cement business, the company earned revenue worth Rs.379 crore in Q2 from 5.5 million tonne per annum (MTPA) operational capacity.The company’s cement business caters to key markets in Uttar Pradesh, Madhya Pradesh, Bihar, Jharkhand, West Bengal and Vidarbha region.The company’s EPC (engineering, procurement and construction) business earned a revenue of Rs.682 crore in the quarter under review.
Its order book stood at Rs.3,876 crore as on September 30, 2015.The company informed that its plans to acquire Pipavav Defence and Offshore Engineering for which it has received approvals from Securities Exchange Board of India (SEBI) and Competition Commission of India (CCI).However, the plans are still awaiting approval from Gujarat Maritime Board.
The company is looking to acquire Pipavav to pursue growth opportunities in the defence sector. The company acquisition plans envisages buying 18 percent of promoters stake accompanied by an open offer for 26 percent of share capital.Recently, the company was allotted 290 acres land in Mihan located near Nagpur in Maharashtra to manufacture aerospace equipment and naval combat systems.
Further, the company is in discussion with large number of international defence majors for strategic partnerships.The company’s scrip at the Bombay Stock Exchange (BSE) grew by 2.15 percent (3.20 p.m.)at Rs.399.75 from its previous close of Rs.391.35 per equity share.