Reliance Infra net profit rises 10 percent
By IANSMonday, February 14, 2011
NEW DELHI - Reliance Infra Monday reported a 10 percent increase in net profit at Rs.405 crore ($91 million) for the quarter ended Dec 31 and said its operating income grew 14 percent to Rs.3,744 crore ($837 million).
In a regulatory filing with bourses, the company also said it had been getting revenues from its road toll project on the Pune-Satara road and the Solar-Karad transmission line, both in Maharashtra.
On the Bombay Stock Exchange, the shares of the company, part of the Anil Dhirubhai Ambani Group, were ruling at Rs.627, having shot up 3.94 percent to an intra-day high of Rs.640 soon after the regulatory filing.
The company posted a cash profit of Rs.537 crore, against cash earnings per share of Rs.21.95. Its order book stood at Rs.23,500 crore.
The board of the company also announced a buy-back offer, of up to Rs.1,000 crore of its outstanding equity shares.
“R-infra will buy-back shares up to a maximum price of Rs.725, representing a premium of over 47 percent to the low of Rs.493 recorded during the last year and a premium of approximately 17 percent to the last closing share price,” said the company in a statement.
The other highlights of the filing are:
- Delhi Metro airport link, developed by the company, is ready to start commercial operations
- Achieved financial closure of 22 projects with total outlay of Rs.30,500 crore ($6.8 billion)
- Conversion of 22.6 million warrants to equity shares issued to the promoters at Rs.929 per share
- Mumbai energy regulatory commission lifted the tariff stay and revised tariffs were being charged to the consumer
- Buy-back of shares will have a positive impact on the company’s stock price, contributing to maximisation of overall shareholder value
