Reliance Infrastructure makes another loan default
Anil Ambani-led Reliance Infrastructure informed the bourses on Monday that it has defaulted on the repayment of a loan. Its lenders include Jammu & Kashmir Bank and SREI Equipment Finance Limited.
The company has made a series of defaults in recent times as it was going through a turbulent time even before COVID-19. In the recently concluded quarter (Q1FY21), the company's revenue fell 35 per cent YoY to Rs 3,533 crore while it witnessed a net loss of Rs 290.6 crore in the quarter as against Rs 319 crore profit in the same quarter of the previous year.
The company in its latest quarterly filing has said that it has nearly Rs 60,000 crore of receivables pending for as many as 5-10 years before various forums, which also includes regulatory and arbitration tribunal. The total financial indebtedness of the listed entity includes short-term and long-term debt of Rs 6,487 crore as on July 31, 2020.
The company's stock has deteriorated almost 95 in the last couple of years. The stock in today's trading fell nearly 5 per cent to touch an intraday low of Rs 28.45.
Reliance Infrastructure Ltd is an infrastructure company that engages in developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads, and metro rail in the infrastructure as well as the defence sector.