Reliance Infra Q1 net dips 24% at Rs 334 cr

Road InvIT to be launched in Sept quarter

Anil Ambani-promoted Reliance Infrastructure reported a 24 per cent dip in its consolidated profit for the June 2017 ended quarter on account of higher expenses. The company also plans to launch its pending InvIT issue in the current quarter.

For the April- June 2017 ended quarter, the company reported a net profit of Rs 334.17 crore, 24 per cent lower from Rs 438.8 crore reported in the same period a year ago. Total income for the company was Rs 8,085.8 crore, 5% higher from Rs 7,711.71 crore. Expenses were higher by 6% at Rs 7490 crore against Rs 7,080 crore reported in the corresponding quarter a year back. 

"There was no capitalisation on two road projects in the corresponding June quarter, which has now shown in this quarter. This has led to the difference in the consolidated PAT numbers," said Lalit Jalan, chief executive officer for RInfra. Earnings before interest, tax, depreciation and amortisation (Ebitda) were at Rs 2,303 crore, up 14%, the company said in its statement.

RInfra also plans to consider the InvIT option for its distribution business. The company had in 2015 signed a non-binding agreement with Canada's PSP Investments for a 49% stake in the company's Mumbai power distribution business. "Discussions continue (on the deal) but it is no more exclusive," Jalan added.

For its infrastructure investment trusts (InvITS) for road assets, the company plans to launch it in the current quarter. Jalan added that the delay was caused by investors who took a back seat with the weak performance of the first two listed InvITs in the country. However, Jalan is confident with the existing InvITs stabilising, investors will return to looking at such instruments. The company said it has the required approvals from the markets regulator to raise upto Rs 2,500 crore using the InvIT route for seven of its road projects.

As of June 2017, the company had a total order book of Rs 5,721 crore.