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New distribution tariff orders helped Reliance Infrastructure post a 12 per cent increase in the second quarter net profit at Rs 427 crore against Rs 382 crore in the year-ago period. In the past quarter, both the distribution businesses were allowed by the regulators in Mumbai and Delhi to increase tariffs.
Revenue dropped nine per cent to Rs 5,273 crore from to Rs 5,798 crore in the year-ago period as sales from the engineering, procurement and distribution business slackened. Most of the company's projects have been commissioned, leading to lower revenue from in-house engineering, procurement & construction (EPC) business.
The company said the recovery accounting to Maharashtra Electricity Regulatory Commission (MERC) arrears from its Mumbai distribution business had already started. The regulator allowed them to approve arrears of Rs 5,550 crore. R-Infra has already recovered Rs 80 crore in the first month.
The regulator also allowed cross subsidy surcharge of Rs 820 crore and the company recovered Rs 72 crore in the first month.
Reliance Infra also said it would commission the first line of the Mumbai Metro project in the current financial year. “We have initiated certification process to start commercial operations. The civil work almost complete, and signal testing and system integration process is in final stages of completion. Trial runs being conducted regularly on the entire Versova-Andheri-Ghatkopar corridor, the company said, in a press release.
The stock of Reliance Infra slipped by 2.14 per cent in Monday’s trade on BSE, before the announcement of results, to Rs 440.95.
R-Power net up 4%
Reliance Power on Monday posted a four per cent increase in net profit for the second quarter at Rs 250.5 crore against Rs 240 crore in the year-ago period. Total income increased 23 per cent to Rs 1,456.5 crore against Rs 1,181 crore in the year-ago quarter. The company’s is all set to commission the second unit of the Sasan ultra mega power project, the boiler of which has been lighted up. On Monday, the company’s stock on the BSE exchange closed 2.4 per cent lower at Rs 73 a share.
