100 Per Cent Jump in Net Profit: Reliance-Group Debt-Free Company Enters Into a Settlement Agreement with Yes Bank
The stock is up by 92 per cent from its 52-week low of Rs 143.70 per share.
On Wednesday, shares of Reliance Group infra stock – Reliance Infrastructure Ltd gained 1.30 per cent to Rs 275.90 per share from its previous closing of Rs 272.35 with an intraday high of Rs 281 and an intraday low of Rs 268.05. The stock’s 52-week high is Rs 350.90 and its 52-week low is Rs 143.70.
Reliance Infrastructure Limited announced that its wholly owned subsidiary, JR Toll Road Private Limited (JRTR), has reached a settlement agreement with Yes Bank Limited (YBL) to resolve the outstanding debt of approximately Rs 271.18 crore, including interest. This settlement will also absolve Reliance Infrastructure from its guaranteed obligations for JRTR's loan. It's important to note that Yes Bank does not have any shareholding in Reliance Infrastructure and is neither a related party nor part of the promoter group.
Earlier, Reliance Infrastructure expanded its business horizons by incorporating a new subsidiary, Reliance Clean EV Private Limited (RCEVPL). This subsidiary, formed by Reliance Velocity Limited, will focus on manufacturing and dealing in vehicles and components that utilize various fuel types. This move aligns with the growing demand for sustainable transportation solutions. Additionally, Reliance Infrastructure's ambitious Dhirubhai Ambani Defence City (DADC) project in Ratnagiri, Maharashtra, is progressing steadily. This significant Rs 10,000 crore project aims to establish India's largest private-sector defence manufacturing hub, potentially partnering with global defence giants. DADC will contribute to India's defence capabilities by producing a wide range of ammunition, including advanced TGMs, catering to both domestic and international markets.
About the Company
Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defence manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro and various airport developments. Reliance Power is a leading power generation company in India with a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh—currently the largest integrated thermal power plant in the world.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, do download the service details here.
According to Quarterly Results, the net sales increased by 67 per cent to Rs 359.7 crore and net profit increased by 101 per cent to Rs 69.8 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 75 per cent to Rs 707.7 crore and net profit increased by 100 per cent to Rs 136 crore in H1FY25 compared to H1FY24.
The company has a market cap of over Rs 10,000 crore. The stock is up by 92 per cent from its 52-week low of Rs 143.70 per share. The promoters of the company own 16.50 per cent, FIIs own 8.38 per cent, DIIs own 1.40 per cent, the Government own 0.02 per cent and the public & others own the rest of the stake i.e., 73.70 per cent as of September 2024.
Disclaimer: The article is for informational purposes only and not investment advice.