RIL

Reliance Infrastructure Ltd , an Anil Ambani group company,  formerly known as Reliance Energy and before that as Bombay Suburban Electric Supply, is India's largest private sector enterprise power utility. It is into power Generation, Transmission, Distribution, EPC and Trading and develops projects like Roads, Highways, Metro Rails, Airports and Speciality Real Estate. This is the “Mumbai Metro” company.

For Q1FY15, it was only thanks to better cost management that the company could show a 10% (YoY) rise in consolidated net profit at Rs.458 crore but sequentially, it was down 26%. The company’s total income for the quarter at Rs.4150 crore was down 24% (YoY) but what pulled it back was the 26% drop in total operating costs, led by a sharp 70% cut in material consumed and sub contracting charges. Cost of electrical energy purchased fell 11% and employee cost was down 4%. Other income of Rs.398 crore also helped though it was mostly nullified by the huge interest outgo of Rs.481 crore.

Post amalgamation between Reliance Bhavnagar Power, Reliance Jamnagar Power, Reliance Infrastructure Engineers into the parent company, Reliance Infra, there were unrealized gains to the tune of Rs.76 crore and had this gain not been added to the profits, net profit would have actually come much lower at Rs.382 crore.

The company had to terminate the Delhi Airport Metro Express, a SPV of the company with Delhi Metro Rail Corp on account of material breach and event of default and Reliance Infra is due to receive termination payment to the tune of Rs.2823 crore, which means if it gets the money, it will recover its entire investment of Rs.1509 crore. Once this news does come in, it will be a great trigger for the stock.