Reliance Infra's Q1 profits rise 7 per cent; stock gains 3 per cent

Anil Ambani owned infrastructure major Reliance Infrastructure has posted an increase in profitability by 7 per cent on a yearly basis owing to improvement in operational capabilities of the company.

Revenue for the quarter in review has remained flat at Rs 7,640 crore as against Rs 7,644 crore clocked in the year ago period. EBITDA for Q1FY17 has grown by a minimal 4 per cent to Rs 1,751 crore compared to Rs 1,691 crore achieved in the corresponding quarter of the previous fiscal.

Reliance Infra’s consolidated net worth for the quarter stands at Rs 25,920 crore and a Book Value of Rs 986 per share at the end of Q1FY17. Company's debt/equity stands at 1.3x.

On the segmental revenue contribution, power business continued to be top revenue generator segment followed by EPC and contract business. Company completed 100 per cent sale of its cement subsidiary to Birla Corporation Ltd., for Rs 4,800 crore in the gone by quarter.

Reliance Infrastructure welcomed Cabinet Committee on Economic Affairs' (CCEA's) initiative to revive construction sector and stated that Rs 14,000 crore is under advanced stage of arbitration proceedings. Company is expected to receive a cash flow boost once arbitration awards start to trickle in, which will help shore up its working capital needs.

Reacting to a good set of numbers Reliance Infra scrip closed with the gains of 3.28 per cent at Rs 596.70 on NSE.