Anil Ambani-led Reliance Infrastructure (RInfra) today reported 12.39 per cent decline in net profit for the quarter ended June 30 at Rs 400.91 crore mainly due to losses incurred by its cement and Mumbai metro businesses in spite of an increase in revenues.
The company had reported a profit of Rs 457.62 crore in the corresponding period last year.
RInfra's total operating income during the quarter rose to Rs 4,336.83 crore as against Rs 4,150.89 crore in the same period last year.
"We have achieved the profit of Rs 400.91 crore despite the losses incurred on the Mumbai metro and cement businesses which is around Rs 50 crore and Rs 39 crore, respectively, during the quarter, which is common in the first year of operations of any new business," Chief Executive Officer M S Mehta told reporters here.
He said had the company not incurred these losses, the profit would have been higher by five per cent at Rs 490 crore.
Its total expenditure during the quarter was Rs 3,835.26 crore as against Rs 3,607.51 crore in the corresponding period a year ago.
Segment-wise, power business revenue declined to Rs 3,147.41 crore as against Rs 3,370.86 crore a year ago.
Engineering Procurement and Construction (EPC) and contract business revenue during the quarter went up to Rs 628.83 crore as against Rs 589.69 crore in the corresponding quarter previous year.
Infrastructure business garnered a revenue of Rs 213.17 crore while Rs 356.50 crore came from the cement business.
"Out of the 11 BOT road projects that we currently have in our portfolio, 10 are already operational and revenue generating.
"We don't see many road projects coming on BOT basis and given the current situation, we would prefer EPC contracts. We are not saying that we will not bid for BOT projects but we will be cautious in taking up any project," he said.
During the quarter, the company incurred higher finance costs which went up to Rs 643.73 crore from Rs 480.75 crore.
