Reliance Infra Q3 net dips

In Q3 last year, the profit was Rs 728 crore as against Rs 450 cr this year

Reliance Infrastructure, on Thursday, reported a 39 per cent drop in third quarter net profit to Rs 450 crore, against Rs 728 crore in the corresponding quarter last  year.

The decline is due to an exceptional item of Rs 379 crore in the year-ago period, as it sold the shares of sister company Reliance Power. Without the exceptional item, its net profit grew 26 per cent, after adjusting for taxes, versus the year-ago profit of Rs 357 crore. This is in spite of a 25 per cent fall in total income to Rs 4,218 crore, against Rs 5,602 crore in the year-ago period.

“This is because our margins (improved) in the construction business. Also, we had recovered money from Mumbai distribution business due to regulatory clearance,” said a company official.

However, there are a host of transactions that have taken place in the last few quarters, as a result of which the performance is not strictly comparable. For instance, the fall in sales can be partly attributed to the company reducing its holding in Delhi distribution companies to 29 per cent in the September quarter from the earlier 49 per cent.

The two companies reported total income of about Rs 12,000 crore in FY13 but profits had been muted. That apart, Reliance Infra had also reduced its stake in three road toll projects to 49 per cent in the previous quarter. Also, Maharashtra Electricity Regulatory Commission allowed it to recover Rs 228 crore in arrears and Rs 136 crore in surcharges, which have reflected in the December quarter.

Reliance Power
Reliance Power’s net profit rose 0.3 per cent year-on-year to Rs 267 crore from Rs 266 crore. Its total income was up six per cent to Rs 1,484 crore from Rs 1,586 crore in the year-ago period.