Reliance Infrastructure Reports Strong Financial Performance in Q2 FY25

Reliance Infrastructure, a midcap company in the power generation and distribution industry, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Reliance Infra. has shown a positive performance in the second quarter of FY24-25, with a score improvement from 13 to 17 in the last three months. The company’s profit after tax (PAT) for the quarter has grown by 231.8% to Rs 426.54 crore, compared to the average PAT of the previous four quarters which was at Rs -323.55 crore. This indicates a very positive trend in the near term.

Another positive aspect for Reliance Infra. is its operating profit to interest ratio, which is at its highest in the last five quarters at 3.46 times. This shows an improvement in the company’s ability to manage interest payments. Additionally, the company has also generated a higher cash flow from its business operations, with an annual operating cash flow of Rs 4,097.47 crore in the last three years.

In terms of sales, Reliance Infra. has recorded its highest net sales of Rs 7,258.49 crore in the last five quarters, with a growth of 22.7% over the average net sales of the previous four quarters which was at Rs 5,917.30 crore. This indicates a positive trend in the near term. The company’s operating profit (PBDIT) for the quarter is also at its highest in the last five quarters at Rs 1,635.53 crore, showing a positive trend in the near term.

Reliance Infra. has also shown an improvement in its operating profit margin, which is at its highest in the last five quarters at 22.53%. This indicates an increase in the company’s efficiency. The company’s earnings per share (EPS) for the quarter is also at its highest in the last five quarters at Rs 103.05, showing an increase in profitability and higher earnings for shareholders.

In terms of liquidity, Reliance Infra. has a strong cash position with cash and cash equivalents of Rs 3,056.65 crore in the last six half yearly periods. The company’s debt-equity ratio is also at its lowest in the last five half yearly periods at 0.54 times, indicating a reduction in borrowing compared to equity capital.

Overall, Reliance Infrastructure has shown a positive financial performance in the quarter ending September 2024, with improvements in various key areas. This is a promising sign for the company and its shareholders.