During Jan-Mar 2013, the net profit of Reliance Infrastructure (R-Infra) grew a whopping 76 per cent to Rs 725 crore from Rs 411 crore in the year-ago period.
However, the firm's total income from operations declined 15.3 per cent to Rs 6,187 crore from Rs 7,135 crore in the same quarter of 2011-12. The decline in income is attributed to the contraction of revenue from its captive construction business by almost half as many of its infra projects were commissioned.
Total expenditure reduced, too, by 18 per cent, as its construction material consumption fell 51 per cent.
The firm does not expect its engineering, procurement and construction (EPC) business to show much growth. For this year, the firm guided an annual top line (revenue) for EPC at Rs 7,000-7,500 crore, based on the current and expected order book. R-Infra expects it to be in the same range the next year as well, Lalit Jalan, Chief Executive Officer of the firm said.
The company’s infra business, however, showed 64 per cent annual increase. Jalan hopes this business, only 2 per cent of revenue, will show this kind of growth in the next three years as well.
In the first quarter of 2013-14, the firm expects two more road projects to be commissioned. The Mumbai (rail) Metro Line-1 may also start operations this year.
The firm witnessed strong growth in its electricity distribution business, with customer numbers up, as are rates.