RIIL profit dips 22% in July-September

Mumbai: Reliance Industrial Infrastructure Ltd (RIIL) on Monday posted a 21.6 per cent decline in standalone profit at Rs 2.10 crore for the quarter ended September 30, 2018.

The company had posted standalone profit of Rs 2.68 crore in the corresponding quarter of previous fiscal, RIIL said in a BSE filing. However, the company’s total income during the July-September quarter increased to Rs 25.17 crore, over Rs 23.79 crore in the year-ago period.

RIIL continues to provide infrastructure support services namely transportation of petroleum products and water through pipelines, construction machinery on hire, and other support services to Reliance Industries Group, with a substantial portion provided to Reliance Industries Limited.

RIIL presently does not have any expansion plans on the anvil, the company said in a release.

Meanwhile, the telecom sector is likely to experience three more quarters of losses, hurt by high levies and “unsustainable tariffs”, a top official of industry body COAI has said.

“Under the current scenario, I see at least another three plus quarters of losses. Why? Because personally, I do not think the present tariffs are sustainable for long term health of the industry…,” COAI Director General, Rajan Mathews told PTI.

In 2016, Reliance Industries launched Jio, a new fourth-generation wireless service that disrupted the telecom industry by offering free calls and cheap data on mobile phones.

Jio’s entry set off a brutal tariff war, forcing older players such as Airtel, Vodafone and Idea (now Vodafone Idea Ltd) to cut tariffs, denting the industry’s financial metrics and deepening the impact of regulatory decisions like cut in termination charges.

Asked if he expects the mobile rates to fall further or stabilise, Mathews said, the tariffs are already at affordable levels.

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