Its total expenditure during the quarter was almost flat at Rs 4,140.63 crore as against Rs 4,159.66 crore in the corresponding period a year-ago.
Reliance Infrastructure today reported a 26.11% drop in consolidated net profit for the quarter ended March 31, 2015 at Rs 459.11 crore, mainly due to the loss the company has incurred from its cement and Mumbai metro businesses.
The company had reported a net profit of Rs 621.42 crore in the January-March quarter of the last fiscal.
Its total operating income during the quarter declined marginally to Rs 4,618.21 crore as against Rs 4,707.69 crore in the corresponding period last year.
"Our net profit for the quarter would have been 19 per cent higher if we exclude the loss of Rs 70 crore incurred by Mumbai Metro and Rs 55 crore in cement business during the period as well as one time gain in Mumbai generation of Rs 130 crore," its Chief Executive M S Mehta told reporters here.
Its total expenditure during the quarter was almost flat at Rs 4,140.63 crore as against Rs 4,159.66 crore in the corresponding period a year-ago.
For the year, the company recorded a consolidated net profit of Rs 1,800.18 crore as against Rs 1,913.67 crore in FY14.
Its total income for FY 2015 dropped to Rs 17,198.46 crore as against Rs 19,033.68 crore in the previous year.
Total expenses during the year stood at Rs 15,120.65 crore in comparison to Rs 16,736.88 crore in the previous year.
During the year, the company incurred a loss of Rs 191 crore and Rs 115 crore on its Mumbai metro and cement businesses, respectively.
"This year has been quite good...Operations have been stable in all the businesses. Our view is that after the sluggish years in the roads sector, there has been an improvement in traffic which is a reflection of GDP growth and increase in economic activities," he said.
Segment-wise, power business contributed Rs 3,299.25 crore in revenues, followed by Rs 844.76 crore from EPC and contracts business during the quarter.
Infrastructure business garnered a revenue of Rs 201.66 crore while Rs 296.82 crore came from the cement business.
For the year, the EPC business revenue stood at Rs 2,752 crore while road and Mumbai metro earned Rs 606 crore and Rs 136 crore respectively during the year. Cement business revenue stood at Rs 519 crore during the year.
"There has been a good progress in the power business as we are adding new customers in our Delhi and Mumbai distribution networks. The transmission segment is adding revenues to the power business," Mehta said.
The company, which was earlier conservative about its EPC business, is not keenly looking at opportunities in the segment.
"Though we continue to remain conservative in the EPC segment with a focus on small internal projects, we are now looking at opportunities in the roads sector as BOT road projects are not coming up for bidding and there are a lot of uncertainties. EPC in roads is progressing well," he said.
However, Mehta noted that unless investments kick start on broad scale, the company doesn't see EPC giving good returnsin near future.
"NHAI projects are not looking attractive at the moment. But this will not remain so and there is a need to kick start investments in the sector," he said.
Mehta said the company is also looking at EPC orders in the solar segment.
"Our focus will be on solar EPC projects as we have the expertise in the field as well as the cement business. We already have a 5.8 mtpa cement plant operational in Madhya Pradesh and we plan to add nearly 10 mtpa, with 5 mtpa each in Maharashtra and Uttar Pradesh in the next few years," he said.
Mehta further said the foray into defence manufacturing with the acquisition of Pipavav Defence and Offshore Engineering Co, through acquisition of 18% promoters stake accompanied by open offer for 26% of share capital, gives a good growth opportunity for the company.
"We have entered the defence sector at the right time given the latest announcements made by the government. The Pipavav acquisition gives us a good opportunity in the ship building segment. But we are keen on all fronts in the defence sector," Mehta said.
As on March 31 the consolidated net worth of the company stood at Rs 26,974 crore, while the gross debt is Rs 25000 crore.
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