Reliance Infrastructure Ltd of the Anil Ambani Group has reported a 37 per cent decline in net profit for quarter ending March 31, due to increased in third-party power procurement cost.

For the quarter the company achieved ₹320 crore as net profit, which in comparable period last year was ₹510 crore.

Company’s net sales has also dipped by 13 per cent to ₹3,112 crore (₹3,600 crore).

Chief Executive Officer of the company, M S Mehta, addressing the media on Wednesday said the company had to procure electricity from other companies at higher rates. However the hike in cost could not be fully passed on to the consumers due to regulatory orders.

For the quarter, the power cost from external sources was ₹2,112 crore, which in the comparable quarter of the previous year was ₹1,864 crore. The depreciation and amortisation cost hike to ₹244 crore (₹126 crore).

Commenting on the recent investments in Pipava Shipyard, Mehta said that due to Make in India campaign, defence production had become a sunrise sector and the company was keenly looking at various opportunities in the sector, “But since our investments in the sector are new, it would take some time to firm up the plans,” he said.

The company has recommended a dividend of ₹8 on a ₹10 fully paid up equity share. The dividend will be paid on the equity share capital of ₹262.99 crore.

At the closing of the trading hours on the BSE, the stock was at ₹421.90 a decline of 1.48 per cent over the previous close.

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