RIIL down in the red

Reliance Industrial Infrastructure had posted a disappointing Q2FY16 performance and the same trend continues into Q3 too. The company posted a 1% (YoY) drop in total revenue at Rs.25 crore. EBITDA was down 6% at Rs.8 crore while net profit dropped by over 25% at Rs.4 crore and sequentially, it was down 5%.

For 9MFY16, net profit dropped 23% at Rs.12 crore. Its distribution of income shows that its main earning comes from hire of construction machineries which was down 3%; this was followed by support services, down 1% and product transport services was up 1%. 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.

The market is obviously disappointed and the stock is down 2% at Rs.438 levels, with an intra day low at Rs.425.75.