RELIANCE INDUSTRIAL INFRASTRUCTURE

Reliance Industrial Infrastructure LTD (RIIL) posted a disappointing Q3FY17. On a 4.5% (YoY) rise in net sales, the company posted a 25% drop in net profit at Rs.3 crore. Employee benefit costs rose by a huge 32% and total expenses were up 10%. EBITDA came in 9% lower at Rs.5 crore and margins slipped from 24.85% to 21.74%.

For 9MFY17, net profit dropped 28% at Rs.9 crore. Its distribution of income shows that its main earning comes from hire of construction machineries which was up 6%; this was followed by support services, up 2% and product transport services was up 3%. RIL holds 45.43% stake in the company.

A Mukesh Ambani group company, it is mainly engaged in the business of setting up/operating industrial infrastructure. Its main activities are providing services of transportation of petroleum products and raw water through its pipelines, construction machinery on hire and other infrastructure support services. The Company has its operations mainly in the Mumbai and the Rasayani regions of Maharashtra, Surat, and Jamnagar belts of Gujarat. Its main client, not surprisingly is Reliance Industries.