RInfra Q3 net profit up by 2 per cent

The Anil Ambani promoted Reliance Infrastructure (RInfra) announced its quarterly results on Tuesday. The company showed growth in EBITDA and net profit due to decrease in Power; Fuel; and material consumed costs.

On financial front, the consolidated net revenue from operations of RInfra reached  Rs 4395 crores in Q3FY16 compared to Rs 4788 crores in Q3FY15, a decrease of 8.20 per cent year on year (YoY). The EBITDA stood at Rs 1294 crores this quarter compared to Rs 1195 crores in Q3FY15, an increase of 8.28 per cent YoY. The EBITDA margin of company stands at 29.44 per cent this quarter compared to 24.95 per cent in Q3FY15. The increase in EBITDA is due to the decline in cost of power purchased, and raw materials consumed by 12.42 per cent and 3.23 per cent YoY, respectively. The increase in other income also helped to increase EBITDA. Other income increased to 463 crores from Rs 417 crores in Q3FY15, an increase of 11.03 per cent YoY. The interest expenses increased by 11.83 per cent YoY to Rs 692 crores in Q3FY16 from Rs 618 crores in Q3FY15. The net profit for period stands at Rs 463 crores compared to Rs 452 crores in Q3FY15, an increase of 2.43 per cent YoY. 

The nine month ending consolidated net revenue from operations increased by 0.53 per cent and reached Rs 12647 crores, compared to Rs 12580 crores for the same period last year. The net profit for nine month period stands at Rs 1315 crores, compared to Rs 1341 crores, a decrease of 1.93 per cent for the same period last year. 

Further as on December 31, 2015 the consolidated Networth of the Company stands at Rs 28,202 crore and is conservatively financed with debt to equity (D/E) of 1. The company's Mumbai Metro and cement business continue to incur loss at Rs 49 crore and Rs 44 crore respectively. This quarter the company acquired 36.5 per cent management control of Pipavav Defence. It also claimed that the monetisation of cement, road and Mumbai power business is on track.

The company has recently entered into the defence sector. The Maharashtra Government has allotted land at Mihan near Nagpur for the development of India's first smart city for the defence sector, known as Dhirubhai Ambani Aerospace Park (DAAP). The scrip is trading at Rs 462.50, an increase of 1.70 per cent from previous close.