The growth of the Indian economy is complemented by rapid infrastructural development and energy generation. The massive commercial infrastructure projects happening in India aim to sustain its growing trade and commerce. The 2024 budget has allocated 3.4% of the country’s GDP to infrastructural development.
Moreover, the country is aiming for an energy transformation. In this era of growing environmental concerns, India is striving to switch to green energy sources and reduce its carbon footprint. Energy usage of industries will contribute significantly to this ambition.
A prominent player in the field of commercial infrastructure development is Reliance Industrial Infrastructure Ltd. The third quarter report of FY25 was notified on 15th January 2025.
The quarterly report might help investors analyse investment decisions that can optimise their returns. The blog takes a keen look at the prominent takeaways from the Q3 result.
Company background
Reliance Industrial Infrastructure Limited primarily builds and operates industrial infrastructure. A major chunk is under the ownership of Reliance Industries Ltd. (45.43%). It was established in September 1988 and commenced its business in March 1992.
The major activities of the company include power and infrastructure. Power is generated, transmitted, distributed, and traded by the company. It also constructs and sustains infra projects, like the construction of roads and metros.
A brief look at the Reliance Industrial Infrastructure Q2FY25 report.
Before moving on to the Q3FY25 report of the company, the previous quarterly report might help uncover trends and patterns. The quarterly report was released on 11th October 2024. Some key takeaways from the last quarterly report are as follows.
- The total revenue of the company was ₹18.37 crores.
- The operating profit margin was -23.20%.
- The net profit was at ₹2.44 crores.
Stock price movement before Reliance Q3
On 15th January, the share opened at ₹ 1,007. The stock reached its intraday high at 1,035.80. With a 0.88% change, the stock continued to fare green in the market. The trading volume was 179.92 thousand.
Q3FY25 report of RIIL
The quarterly report of Reliance Industries Infrastructure Ltd. gave a details view of the company’s financial health from October 2024 to December 2024. The important takeaways from the report are listed below.
- Net sales: The net sales of the company were ₹ 12.36 crore in December 2024. It is a 17.3% fall from the net sales in December 2023. December 2023 reported a net sales of ₹ 14.95 crore.
- Standalone net profit: The quarterly net profit fell by 8.63% from Rs. 2.71 crore in December 2023. In December 2024, the net profit was ₹ 2.48 crore.
- EBITDA: It stands for earnings before interest, tax, depreciation and amortisation. The primary aim of this metric is to gauge the operational profitability of the firm. EBITDA in December 2024 is ₹ 3.33 crore. It indicates a fall of 29.75% from ₹ 4.74 crore in December 2023.
- EPS: The earnings per share of the company also fell to ₹1.64 from ₹1.80 in December 2023.
- Year-on-year income: At the consolidated level, the total income is ₹ 1,860 Lakh. It is a 9.35% fall from ₹ 2,052 Lakh year on year. The company disclosed that it is due to lesser utilisation of infrastructure assets.
- Consolidated net profit: The year-on-year profit fell by 24.52%. Net profit is ₹ 274 Lakh, in contrast to ₹ 362 Lakh in the Q3 report of FY 2023-24.
The table below compares the performance of Reliance Industrial Infrastructure Ltd. in Q3FY24 to Q2FY24 based on the above metrics.
| Parameter | Q3FY24 | Q2FY24 | Percentage change |
| Net sales (₹ crore) | 12.36 | 12.24 | 0.98 |
| Net profit (₹ crore) | 2.48 | 2.48 | – |
| EPS (₹) | 1.64 | 1.64 | – |
| Operating profit margin | -23.54% | -23.20% | -1.46 |
Key projects
Some important projects of the company are listed below.
Petroleum pipeline: The Company has installed a dual pipeline system with a diameter of 200 millimetres from Bharat Petroleum Corporation’s Refinery in Mahul, Mumbai, to Reliance Industries Limited’s Petrochemical Complex in Patalganga. The purpose of this pipeline is to carry petroleum byproducts, like naphtha and kerosene.
Facilities: It has installed and commissioned facilities. A Supervisory Control and Data Acquisition (SCADA) system and a Cathodic Protection system for the pipeline system are some of the major projects.
Water projects: The company built Jackwell at River Tapi and an 18-kilometre Raw Water Pipeline System in Hazira with a diameter of 1200 millimetres.
Petroleum product storage: The company has also established a 70000-kilolitre petrochemical product storage and distribution facility at Jawaharlal Nehru Port Trust Area at Nhava Sheva.
Conclusion
The company has been involved in the construction and maintenance of several key industrial units. In a developing country like India, a growing manufacturing sector is integral to economic growth and development. Companies like Reliance Industrial Infrastructure promote modern and advanced industrial units that are capable of competing in the international market.
The industrial and infrastructure sector is one of the priorities for the government as well. The priority is indicated through budget allocations. The positive stock market performance before the Q3 result indicates investor preference for the segment and the company.
