Ramky Infrastructure witnessed a significant decline in consolidated net profit after tax for the fourth quarter ending March 31, 2024, plummeting by 95% to Rs 575 billion compared to Rs 10.77 billion in the corresponding quarter of the previous financial year. Despite a marginal decrease in consolidated revenue from operations for Q4FY24, standing at Rs 5.81 billion compared to Rs 5.76 billion in Q4FY23, the company faced a notable drop in profitability.
NS Rao, CFO, Ramky Group explained to the media that the substantial drop in net profit was primarily attributed to an exceptional income after tax recorded in Q4FY23. This income of Rs 10.77 billion resulted from a one-time settlement of Rs 12 billion with lenders of its road asset arm, Srinagar Banihal Expressway Ltd (SBEL), during the same quarter. The road asset had been declared a non-performing asset due to cost and time overruns.
Rao emphasised that due to this exceptional item in Q4FY23, the profit after tax figures for the two quarters and financial years FY24 and FY23 were not directly comparable. Despite the challenges, Ramky Infrastructure maintains an order book worth Rs 93 billion and is exploring avenues to raise approximately Rs 2.8 billion through project finance or term loans.
(ET Infra)
