Reliance Infra Second Quarter Profit Rises 34% to Rs 571 Crore

Anil Ambani-led Reliance Infrastructure Ltd., posted a profit growth of 34 percent in the July-September quarter.

Net profit for the quarter came in at Rs 571 crore as against Rs 426 crore in the corresponding quarter last year. Its net sales declined to Rs 6,973 crore for the three-month period, compared to Rs 7,561 crore same period last year.

The utility and construction company’s earnings before interest, tax, depreciation and amortization stood at Rs 1,779 crore, a 3 percent growth compared to Rs 1,724 crore last year.

During the quarter, Reliance Infra entered into a strategic partnership agreement with Dassault aviation to execute offset contracts worth Rs 33,000 crore for 36 Rafale fighter jets – the largest of its kind in India. Going forward, the company’s focus areas will be defense, EPC and power distribution, said CEO Lalit Jalan said at an conference call.

He also said Reliance Infra was one of two companies, the other being L&T, to get clearance for shipyards. The infra firm has commissioned 14 fast patrol vessels for the coast guard and refitting of three naval warships, he said adding “all road projects are revenue operational.”

Talking about the company’s struggling Mumbai Metro business, Jalan said while it still continued to make losses (at Rs 70 crore this quarter), ridership has risen 16 percent to 3.5 lakh users per day on weekdays.

The company’s consolidated debt currently stands at Rs 26,650 crore.