The shares of Anil Ambani’s backed company jumped by approximately 6 percent from the day’s low on Monday, after the company announced that it has written off its subsidiary’s Rs. 273 crore debt obligation with Yes Bank.
With a market capitalisation of Rs 15,013 crores, the shares of Reliance Infrastructure Ltd are currently trading at Rs 379 per share, down by 10 percent from its 52-week high of Rs 421 per share. Over the past five years, the stock has delivered a robust return of 983 percent.
On Monday, the company, through a stock exchange filing, announced that it has fully settled the Rs 273 crore debt obligation, along with interest, of its wholly-owned subsidiary JR Toll Road Pvt. Ltd. at Yes Bank. With this settlement, Reliance Infra is free of its corporate guarantor obligations, a significant move to add strength to the balance sheet.
Financial Highlights
The company reported a revenue of Rs 23,592 crores, up by 3.45 percent from its FY24 revenue of Rs 22,805 crores. Additionally, it reported a net profit of Rs 9,177 crore in FY25 as compared to a loss of Rs 1,148 crores in FY24.
The stock delivered an ROE and ROCE of 37.51 percent and 34 percent and is currently trading at a P/E of 3.43x as compared to its industry peers of 16x.
Reliance Infrastructure Limited is an Indian firm working in the construction and management of infrastructure related to power generation and electricity storage, as well as electricity distribution for residential, commercial, and industrial customers.
The company operates through three segments: Power, Engineering & Construction (E&C), and Infrastructure. The E&C segment provides services for construction, erection, and commissioning works. The Infrastructure segment provides a range of development and maintenance services, which include toll roads, metro services, and airports.
Written by Satyajeet Mukherjee
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