RInfra net profit up 49% at Rs 375 crore on strong operational show

Firm looks to raise Rs 3,000 cr via InvIT route, eyes Rs 50,000 cr order book by FY19-end

Anil Ambani-led Reliance Infrastructure Ltd (RInfra) reported a 49 per cent rise in its consolidated net profit for the December 2016 ended quarter, owing to better operational performance.

For the October-December 2016 period, Reliance Infrastructure reported a net profit of Rs 374.85 crore, 49 per cent higher than Rs 251.50 crore reported in the same period a year ago.

Total income for the company was lower by two per cent at Rs 6,625.55 crore against Rs 6,776.90 crore a year ago. Total income, the company said, was lower due to changes in accounting standards for regulatory income, which stood at Rs 621.53 crore.

Earnings before interest, taxation, depreciation and ammortisation or Ebitda for the quarter under review was at Rs 1,990 crore against Rs 1,659 crore, higher by 20 per cent.

On its proposed listing of infrastructure investment trust (InvIT) for its ten road projects, the company said it is in the approval process and plans to hit the market in the current financial quarter. RInfra looks to raise close to Rs 3,000 crore through the InvIT route.

"The response so far has been fairly encouraging and we will be looking at domestic and international investors," said Lalit Jalan, chief executive officer, RInfra.

Revenue from the infrastructure business increased by 14 per cent on a year-on-year basis. RInfra also looks to achieve an order book target of Rs 50,000 crore by the end of financial year 2018-19.

"By the end of the current financial year, our order book would be upwards of Rs 9,000 crore, and we will target an order book of Rs 50,000 crore in the next two financial years," Jalan said.

The company will look to bid for various infrastructure projects, including state government-funded ones and other related projects such as the planned Chhatrapati Shivaji Maharaj memorial in Mumbai and other inland waterway related works.

As on December 2016, the company's engineering, procurement and construction order book was at Rs 5,540 crore and reported revenue of Rs 753 crore.

On its planned asset sale, the share purchase agreement executed with Adani Transmission Ltd for its WRSS transmission assets and Parbati Koldam project, Jalan said the company will complete the transaction by April this year. The transaction once complete will help reduce debt by Rs 2,000 crore.

"Discussion are at an advanced stage with PSP Investments of Canada for 49 per cent stake sale in Mumbai power business," the company said in its statement to BSE.

Jalan added that there had not been any major negative impact due to demonetisation on the company's power, metro and roads business.