Reliance Infrastructure is likely to post around 3.5 percent year-on-year decline in profit to Rs 316 crore for June quarter. Total income is also seen down around 1.4 percent to Rs 3399 crore Y-o-Y, states a CNBC-TV18 poll. Analysts also expect operating margins to dip 50 bps to 12.8 percent.
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Numbers are expected to be muted for Reliance Infra this quarter on account of—
Higher interest cost
An around 1.5 percent Y-o-Y decline in revenue on lower engineering and construction (E&C) segment revenues
Margins in E&C business expected to remain a drag on the financials
However, restriction on Tata Power’s Distribution by MERC on cherry picking of high end consumers of Reliance Infra in Mumbai will help the firm recover higher cross-subsidy needs and regulatory assets
Declining order book which has hurt revenue visibility and hence the run rate of orders would be a critical, monitor for Q1 and going forward
Margins of the EPC division also need to be monitored
Stock is trading close to its 52 Low of Rs 315 seen in Mar 2013 and has declined almost 23 percent in the last one year.