Reliance Infrastructure share price falls over 23% as Q3 earnings fail to cheer investors
BusinessToday.In February 7, 2019
The Reliance Infrastructure share price fell in trade today after the Q3 earnings of the ADAG Group Group firm failed to cheer investors. The Reliance Infrastructure share price fell 23.60% intra day to 117.65 - a fresh 52 week low- compared to the previous close of 154 level on the BSE. The Reliance Infrastructure share price has been falling for the last five days and lost 55.27% during the period. Reliance Infrastructure share is trading below its 50-day and 200-day moving averages of 287.22 and 347.28 levels, respectively. Reliance Communications' decision to opt for insolvency proceedings coupled with Q3 earnings announcement has led the stock head south for the last five days.
The infrastructure firm logged a 7.92 per cent rise in consolidated net profit to Rs 325.26 crore for the December 2018 quarter. It had reported a net profit of Rs 301.38 crore during the corresponding period of the previous fiscal.
Income from operations rose to Rs 4,115.72 crore during the third quarter, compared with Rs 4,090.67 crore in the year-ago period, Reliance Infrastructure said.
The Reliance Infra stock lost 14.87% on Monday after board of directors of Reliance Communications on Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The Reliance Communications stock plummeted 34.91 per cent to close at Rs 7.55 on the same day.
The board meeting led to the conclusion that despite the passage of over 18 months, lenders received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process was yet to make any headway.
It is estimated that RCom has been reeling under debt of over Rs 46,000 crore.The Reliance Communications stock was trading 6.75% lower at 5.11 level on the BSE today.
Meanwhile, the Sensex and Nifty were trading 65 points and 20 points higher at 37,041 and 11,083, respectively in afternoon trade.
Edited by Aseem Thapliyal