This Anil Ambani stock which deals in the business of developing infrastructure projects through various Special Purpose Vehicles (SPVs) in various sectors such as roads, power, airport, and metro rail, dropped upto 8 percent after the company declared a net loss increase year on year.
Price Movement
Reliance Infrastructure Limited‘s stock in Monday’s session touched a day’s low of Rs. 230.75 which was 7.7 percent lower. The stock reiterated from the day’s low and was trading at Rs. 238 per share down by 4.80 percent from the previous closing price of Rs. 250. The stock has delivered a negative return of around 2 percent in the past year and has underperformed the Nifty Index in the same period.
Q3FY25 Financial Performance
The company’s stock declined after Reliance Infrastructure’s financial performance for Q3FY25 results show revenue from operations of Rs. 5,032.55 crore which increased by 8.51 percent year on year, from Rs. 4,637.84 crore in Q3FY24 and a 30.66 percent decline from Rs. 7,258.49 crore in Q2FY25.
Their net loss increased by 683 percent year on year, from Rs. 421.17 crores in Q3FY24 to Rs. 3,298.35 crores in Q3FY25. Quarterly, the net profits stood at Rs. 4,082.53 crore.
The loss widened due to exceptional items of Rs. 3,070.87 crore for this quarter. It included provisions against corporate guarantees worth Rs. 1,570.48 crores, Impairment of Rs. 896.29 crore, and Rs. 726 crore and others. Further, the exceptional items even involved Reversal of Provision for expected Credit Loss of Rs. 3,972.17 crores, Disputed Liabilities of Rs. 160 crore, and others.
Business Segments
As per the recent December 2024 results, the company recognizes its revenue from operations from the Power business which contributed around 90.13 percent followed by the Engineering and Construction Business which contributed 1.13 percent, Infrastructure Business contributed 8.73 percent. In Operating profits, Power Business contributes the highest.
About the company
Reliance Infrastructure Limited was formerly known as Reliance Energy Limited is involved in the power, construction, and defence business. The company has executed projects in metro rail and roads, generate power and provides EPC services.
Written by Santhosh S
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