Net Profit of Reliance Industrial Infrastructure falls by 21 per cent

Reliance Industrial Infrastructure Limited (RIIL), is a part of the Reliance group companies. The business of RIIL is mainly setting up/operating the Industrial Infrastructure. The company is also engaged in other activities like involving leasing and providing services connected with computer software and data processing.

Recently, RIIL announced its First Quarter FY16 standalone result, The total revenue including other income of RIIL is increased by 13.95 per cent to Rs 26.54 crore compared to Rs 23.29 crore in the same period a year ago. The increase was primarily on account of the increase in income from the hiring of construction machinery and increase in Other Income. During the quarter ending  June 30 FY15, the income from product transportation services and hiring of construction machineries increased by 0.8 per cent and 33.7 per cent respectively. However, the income from support services decreased by 4 per cent on a yearly basis.

There was a huge increment in total expenses including an increase in employee cost, depreciation and other expenses by 26.2 per cent, 2.9 per cent and 14.3 per cent respectively. The total expenses stood at Rs 20 crore in Q1FY16 than 17 crore in Q1FY15, increased by 59.47 per cent. Hence, the EBITDA decreased by 164.84 per cent, EBITDA margin reduced by 529 basis points to 26.44 per cent.

In the First Quarter FY16, the net profit of RIIL slipped around 21 per cent, reducing it to Rs 4.44 crore as compared to Rs 5.6 crore in the same period of previous fiscal. After the result announcement, the share prize of RIIL is up by nearly 1 per cent to Rs 393.