Reliance Infra Confident Of Repaying Debt Despite Auditor Concerns
Reliance Infra’s debt is expected to come down by at least Rs 10,000 crore by March next year, says CEO Garg.
Reliance Infrastructure Ltd. said it’s confident of meeting debt obligations even as its auditor cast a doubt about the company’s ability to remain in business.
The “regulatory assets under approval of more than Rs 22,000 crore”, another Rs 8,000 crore stuck in arbitration, and stake sale in road projects would help it turn into a net cash company,” according to Punit Garg, executive director and chief executive officer at the Anil Ambani flagship firm. “Reliance Infrastructure doesn’t need any more debt.”
The company’s total debt—which stood at Rs 15,860 crore as of March—is expected to come down by at least Rs 10,000 crore by March next year after it sells stake in all road projects, Garg told BloombergQuint.
Reliance Infrastructure has already signed an agreement to sell stake in Delhi-Agra Toll project, which is expected to complete in the next 60-70 days, he said, adding this transaction will bring down its debt by Rs 2,000 crore. The company is also expecting to realise close to Rs 8,000 crore by selling stake in other road projects in the ongoing financial year, according to Garg.
The company reported its biggest-ever quarterly loss in the three months ended March as it booked impairment and write-offs worth Rs 8,500 crore related to its associate companies and advances. Also, its auditors said a “material uncertainty” exists that may cast significant doubt on the Reliance Infrastructure’s ability to continue as a going concern.
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