Reliance ADAG firm Reliance Infrastructure’s net profit for the quarter ended March 31 fell 27.5 per cent to Rs 251 crore from Rs 346.2 crore in the corresponding quarter of the previous year.
The fall in net was partly due to payment of Rs 71.85 crore in deferred taxes from previous years. Its net sales of electrical energy also fell to Rs 1,268.4 crore from Rs 1,452.95 crore, down 12 per cent in the period. The company is engaged in a dispute with Tata Power over purchase of electricity in Mumbai.
However, R-Infra’s income from EPC (engineering, procurement and construction) and contracts divisions rose by 48.2 per cent to Rs 1,284.75 crore against Rs 886.7 crore in the corresponding period last year. Its cost of electrical energy purchased fell 21.5 per cent to Rs 565 crore from Rs 720.1 crore. This was due to reduction in fuel adjustment cost.
For the year ended March, CEO Lalit Jalan told reporters, net profit rose 12 per cent to Rs 1,519 crore from Rs 1,353 crore. Total operating income was up 16 per cent to Rs 14,865 crore against Rs 12,845 crore in the same period last year. The company has declared an interim dividend of Rs 7.10 a share. Jalan said the promoters’ holding increased to 43 per cent from 38 per cent due to warrant conversion.
According to Jalan, the company’s EPC order book position stood at Rs 19,250 crore. The division is working on five power projects of over 7,500 Mw, along with two road projects. During the year, the turnover the EPC division was Rs 3,415 crore against Rs 2,437 crore. The EPC business is expected to grow 30 per cent.
Jalan said the company was developing 23 projects of Rs 36,200 crore, covering areas such as roads, metro rails, transmission, sea link and airports, excluding distribution business, and two speciality real estate projects. “There will be 13 revenue-generating projects in 2010-11, having a total project outlay of Rs 21,000 crore,” he added.
The company’s cement arm, Reliance Cementation, has achieved financial closure for a five-million tonne project in Maharashtra.
