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RInfra gains after completion of Tamil Nadu road project

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Capital Market
Last Updated : Sep 02 2013 | 3:25 PM IST

Reliance Infrastructure rose 2.51% to Rs 351 at 14:39 IST on BSE after the company announced completion of a road project in Tamil Nadu.

The announcement was made during trading hours today, 2 September 2013.

Meanwhile, the BSE Sensex was up 298.01 points, or 1.60%, to 18,917.73.

On BSE, 3.98 lakh shares were traded in the counter compared with average volume of 6.47 lakh shares in the past one quarter.

The stock hit a high of Rs 354.50 and a low of Rs 343 so far during the day. The stock hit a 52-week low of Rs 308 on 2 August 2013. The stock hit a 52-week high of Rs 572.35 on 10 January 2013.

The stock had outperformed the market over the past one month till 30 August 2013, rising 1.44% compared with the Sensex's 3.77% decline. The scrip had, however, underperformed the market in past one quarter, falling 10.28% as against Sensex's 7.89% fall.

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The large-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.

Reliance Infrastructure (RInfra) announced completion of widening of the entire 136 kilometre (km) Salem-Ulundurpet road in Tamil Nadu through its special purpose vehicle (SPV) - SU Toll Road.

Built at a cost of Rs 1061 crore, the SU corridor connects major tourist destinations, industrial zones in Salem district and the Chennai international airport. The popular hill station Yercaud in Tamil Nadu will also be easily accessible through this corridor, the company said.

The project has been executed on Build Operate Transfer (BOT) pattern under the aegis of National Highways Authority of India. RInfra has been awarded the contract to operate and maintain the road for a concession period of 25 years, the company added.

Commenting on this development, Sudhir R Hoshing, CEO (Roads), Reliance Infrastructure, said, "We are happy to complete the widening of the entire stretch of Salem-Ulundurpet road that will provide a hassle-free, safe and smooth driving experience. We expect an increase in traffic of over 4,000 more vehicles per day. The new toll plaza is closer to Salem, which is an industrial centre with numerous steel, textiles, cement and electrical equipment manufacturing units. Such industrial traffic would benefit from faster and convenient passage through the road."

The SU road has already been revenue operational since 28 July 2012 with two toll plazas located at Nathakkarai and Veeracholapuram. A third toll plaza at Mettupattai has now become operational. Toll collection has started at all toll plazas, RInfra said.

RInfra said that the SU corridor project required major realignment work along with widening the entire stretch right from Salem to enable construction of four lanes. With the completion of the project, the average speed of vehicles will now double to approximately 70 km per hour, thereby reducing the traveling time by upto 50% and also saving fuel cost by almost 40%.

Reliance Infrastructure's consolidated net profit rose 0.78% to Rs 415.20 crore on 1.28% growth in total operating income to Rs 5452.45 crore in Q1 June 2013 over Q1 June 2012.

RInfra is the largest infrastructure company developing projects, through various Special Purpose Vehicles (SPVs), in several high growth areas in the Infrastructure sector i.e. roads, metro rail, and cement. The company is also the leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution, trading and EPC. The SPVs are inter alia developing a metro rail project in Mumbai; eleven road projects with total length of 1,000 kilometres; and developing 2 cement plants of capacity of 5 million tonnes per year each in Maharashtra and Madhya Pradesh. RInfra along with its wholly owned subsidiary generates over 940 MW of power through its five power stations; distributes power to over 60 lakh consumers in Mumbai and Delhi and is developing 5 transmission projects including the first independent private transmission projects.

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First Published: Sep 02 2013 | 2:41 PM IST

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