Reliance Infra Q4 profit seen down 20.5% to Rs 397 cr: Poll

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Reliance Infrastructure's fourth quarter standalone profit after tax is seen falling 20.5 percent year-on-year to Rs 397 crore, according to a CNBC-TV18 poll.

Total income from operations is likely to increase 1.5 percent to Rs 2,750 crore during January-March quarter from Rs 2,710 crore in the same quarter last year.

The slow growth in revenue may be attributable to decline in revenue from EPC division. EPC revenues are expected to decline by 20 percent due to decreasing order backlog.

Operating profit may inch up 1 percent year-on-year to Rs 484 crore but margin may fall 10 basis points to 17.6 percent in the quarter gone by.

Key factors to watch out for

Performance of EPC division, order book position, margins

Performance of infrastructure business

Full year of recovery of regulatory assets in Mumbai DISCOM area

Funding of Pipavav and order accretion remains near term monitorable

Additional news during the quarter

Reliance Infrastructure commissioned 5.8 mtpa cement capacity at MP and current utilisation stands at 65 percent. Company is also in the process of commissioning 5 mtpa in Maharashtra.

It acquired 17.66 percent stake (13 crore shares at Rs 63 apiece) in Pipavav Defense & Offshore at a consideration of Rs 819 crore. It would make an open offer to acquire another 26 percent. The total funding required for the Pipavav acquisition (including the open offer) is Rs 2,080 crore. The deal received approval from Competition Commission of India on May 7.