Reliance Infrastructure's total income is expected to decline 17.3 percent to Rs 2,711 crore in June quarter compared to Rs 3,279 crore in same quarter last year.
Anil Dhirubhai Ambani Group Company Reliance Infrastructure will announce its first quarter (April-June) earnings today. According to CNBC-TV18 poll estimates, analysts expect standalone profit after tax to fall 5.5 percent year-on-year to Rs 354 crore. Total income is expected to decline 17.3 percent to Rs 2,711 crore in June quarter compared to Rs 3,279 crore in same quarter last year. However, operational performance is likely to be strong with the operating profit rising 8.2 percent on yearly basis to Rs 476 crore and margin increasing 410 basis points to 17.6 percent in the quarter gone by. Analysts say continued decline in contribution from EPC segment led by a declining order book has impacted revenue visibility, which is a concern. Infact, EPC revenues in FY15 may get impacted due to prolonged delay in the large capacity projects of Chittrangi, Krishnapattnam and Tilaiya. Margin of EPC division needs to be watched. Current order book of the company stood at Rs 7,500 crore and the management expects EBITDA margin to be maintained in the 8-10 percent range. The regulator in September 2013 approved Rs 2,800 crore as the quantum of regulatory assets recoverable by Reliance Infrastructure. This will be recovered along with the carrying cost at SBI PLR at Rs 965 crore per year for the next six years, say analysts. The company also received a cross subsidy surcharge of Rs 149 crore for Q4FY14 and Rs 140 crore in Q3FY14. The company is likely to report a weak Q1 numbers due to weak E&C (revenues may fall by 25-30 percent Y-o-Y), higher interest costs and lower treasury income.
Anil Dhirubhai Ambani Group Company Reliance Infrastructure will announce its first quarter (April-June) earnings today. According to CNBC-TV18 poll estimates, analysts expect standalone profit after tax to fall 5.5 percent year-on-year to Rs 354 crore. Total income is expected to decline 17.3 percent to Rs 2,711 crore in June quarter compared to Rs 3,279 crore in same quarter last year. However, operational performance is likely to be strong with the operating profit rising 8.2 percent on yearly basis to Rs 476 crore and margin increasing 410 basis points to 17.6 percent in the quarter gone by. Analysts say continued decline in contribution from EPC segment led by a declining order book has impacted revenue visibility, which is a concern. Infact, EPC revenues in FY15 may get impacted due to prolonged delay in the large capacity projects of Chittrangi, Krishnapattnam and Tilaiya. Margin of EPC division needs to be watched. Current order book of the company stood at Rs 7,500 crore and the management expects EBITDA margin to be maintained in the 8-10 percent range. The regulator in September 2013 approved Rs 2,800 crore as the quantum of regulatory assets recoverable by Reliance Infrastructure. This will be recovered along with the carrying cost at SBI PLR at Rs 965 crore per year for the next six years, say analysts. The company also received a cross subsidy surcharge of Rs 149 crore for Q4FY14 and Rs 140 crore in Q3FY14. The company is likely to report a weak Q1 numbers due to weak E&C (revenues may fall by 25-30 percent Y-o-Y), higher interest costs and lower treasury income.
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