Anil Ambani Group flagship firm Reliance Infrastructure on Friday reported over 10 per cent rise in profit at Rs 457.62 crore for April-June period on account of a major drop in sub-contracting charges though net sales saw a decline of 26 per cent.
The company said its income declined over 26 per cent to Rs 4,548 crore from Rs 5,746 crore a year ago as its EPC business dipped.
Its sub-contracting charges in the June plummeted to Rs 427.68 crore from Rs 1,439.43 crore in the same period last fiscal, Group Director for Strategy and Corporates Affairs Lalit Jalan told reporters here.
EPC business revenue stood at Rs 590 crore and the order book at Rs 6,181 crore, the company said.
Other income rose to Rs 397.60 crore from Rs 293.48 crore, the newly-appointed chief executive M S Mehta said, adding income from operations declined to Rs 4,150.89 crore from Rs 5,452.45 crore in the last fiscal.
On the outlook for the infra sector, Jalan said the company is hopeful that it could gain from the thrust the government has given to infrastructure development and outlook looks buoyant.
When asked about the capex plan, Jalan said it could be around Rs 2,500 crore for this fiscal, but did not give the details. On fund raising plan, he said the company is evaluating all options including asset monetisation and a QIP issue.
Asked whether the company is interested in picking some cement assets, he sounded positive but did not offer specifics. Similar was his response when sought plans in the infra space where a lot of companies in the road projects are struggling and looking for buyers.
Jalan said the city's first metro project Mumbai MetroOne, which it commissioned in June, has achieved operating cash profit, excluding interest cost. It set a record by carrying over 1 million passengers within a month of operation.
The metro collects around Rs 50 lakh a day from ticket sales and Jalan expressed the hope that it could achieve full operating profit in the sixth or seventh month of operations.
The Metro carries 2.5 lakh commuters a day now which is likely to cross 3 lakh after the monsoons, he added.
As of June 2014, the company had a debt of over Rs 24,000 crore on its book, while its consolidated networth stood at Rs 27,574 crore.
Shares of the company closed at Rs 766.50, down 2.58 per cent on the BSE.
During the quarter, its power distribution in Mumbai and Delhi did well following tariff hikes by regulators. While the DERC approved a tariff hike of 8.3 percent for Delhi discoms, MERC okayed Rs 745 crore arrears and Rs 365 crore cross subsidy surcharge in Mumbai distribution during the period.
Tthe company added 85,000 new customers in Mumbai and Delhi, during the period, taking its total customer base to over 63 lakh.
On the cement business, Mehta said the the company has an operation capacity of 5.8 million tonnes and has established itself well in the five launch markets of MP, UP, Jharkhand, Bengal and select cities in Maharashtra. It is operating and developing two plants of 5 mt each in MP and Maharashtra. The company has also started exporting clinkers to Nepal, Jalan said.
The company recovered Rs 247 crore arrears in the first quarter, following the MERC approval for Rs 925 crore per annum for over the next six years.
It also recovered Rs 76 crore cross-subsidy surcharge in the quarter.
From the road projects, it has 10 revenue generating projects, and one under-development. During the quarter, it earned revenue of Rs 152 crore from this sector against Rs 162 crore a year ago, said Jalan.
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