Reliance Infrastructure posted a marginal rise in net profit at Rs 408 crore for the quarter ended December 31, despite clocking a 177 per cent rise in EPC (engineering, procurement and construction) business at Rs 2,940 crore.

Interest cost more than doubled to Rs 328 crore (Rs 156 crore) and materials and subcontracting charges rose to Rs 2,478 crore from Rs 844 crore.

In power generation, fuel cost was up at Rs 369 crore (Rs 301 crore). Power purchase for distribution was also higher at Rs 1,840 crore as against Rs 1,453 crore.

However, total operating income rose 66 per cent to Rs 6,130 crore (Rs 3,686 crore) on the back of higher EPC revenue.

Mr Lalit Jalan, Chief Executive Officer, said the infrastructure business had registered a loss of Rs 21.22 crore as the Delhi metro and road projects were long gestation (of 25 to 35 years) projects. The revenue model of the metro was such that the 50 per cent revenue would come from retail and commercial spaces and the balance from the metro operation and advertisements.

On RInfra's EPC portfolio of Rs 21,155 crore, which is predominantly from within the group, he said several other projects are under negotiations.

Eleven road projects are under the infrastructure segment and five of them are currently revenue generating. Five more would come online this fiscal, he said.

BUY-BACK

Mr Jalan said 44.3 lakh had been bought back so far for Rs 234 crore and the programme had been closed on February 13. It commenced on April 11, 2011.

The 44.3 lakh shares represent 1.66 per cent of the pre buy-back paid up equity shares at an average price of Rs 528.91 per share. The stock price recorded close to 80 per cent rise from January 2 to February 13, 2012, spiralling from Rs 334 to Rs. 602.

On Tuesday, the RInfra scrip on BSE closed 2.33 per cent higher at Rs 615.

>murug@thehindu.co.in

Related Topics