 "Reliance Infrastructure Q3 net up 2% at Rs 463 cr")
Reliance Infrastructure's consolidated net profit increased by mere 2% to Rs 463 crore for the quarter ended December 31, 2015 against Rs 452 crore in Q3 FY15. The company's cement business and Mumbai Metro continue to incur loss at Rs 44 crore and Rs 49 crore respectively.
The total income dropped by 8.20% to Rs 4,395 crore against Rs 4,788 crore. This was primarily due to reduction in net income from power business which was dipped by 13.26% to Rs 2,832.25 crore compared with Rs 3,265.38 crore. Besides, the income from EPC and contracts business also fell by 33% to Rs 484.13 crore against Rs 728.01 crore.
Its employee benefits expense rose by 5.74% to Rs 335.04 crore against Rs 316.85 crore while the depreciation and amortisation surged to Rs 249.57 crore against Rs 219.01 crore, a rise of 13.95%. The company stock on BSE was closed at Rs 454.75 down 4.13%.
The company has acquired management control (36.5%) of Pipivav Defence and it was launched the asset monetisation of its 5.6 MTPA cement business, 11 road projects of 1,000 km and Mumbai power business.
The company CEO Lalit Jalan said the company's net debt stood at Rs 28,000 crore as on December 31, 2015. He however, informed that the company will be net debt free by March 2017. The company expects to earn Rs 9,000 crore through the amortisation of 11 roads and Rs 5,000 crore from cement business.
Jalan said the company is bidding for smart city projects. According to him, the company has signed non binding term sheet with PSP Investmeents of Canada for 49% stake sale in Mumbai power business and expects binding offer by end of the financial year.