The Hindu : Business : RIL net up 52 p.c. at Rs. 2,091 crores in Q3

Online edition of India's National Newspaper
Saturday, Jan 22, 2005

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Business

RIL net up 52 p.c. at Rs. 2,091 crores in Q3

By Our Special Correspondent

MUMBAI, JAN. 21. Reliance Industries Ltd. (RIL) has announced a net profit of Rs. 2,091 crores for the third quarter ended December 31, 2004, an increase of 52 per cent compared to the same period in the previous fiscal. The company reported a turnover of Rs. 19,714 crores against Rs. 13,622 crores.

For the nine months ended December 31, 2004, the company recorded a net profit of Rs. 5,280 crores against Rs. 3,741 crores for the corresponding previous period, an increase of 41 per cent. RIL recorded a turnover of Rs. 53,324 crores against Rs. 40,933 crores, an increase of 30 per cent.

The operating profit (profit before depreciation, interest and taxes) was at Rs. 10,239 crores against Rs. 7,858 crores, a rise of 30 per cent. The cash profit (before depreciation and deferred tax) was at Rs. 8,622 crores against Rs. 6,550 crores, an increase of 32 per cent.

The refinery operated at 96 per cent capacity utilisation and processed 23.69 million tonnes of crude. Exports including deemed exports also gone up by 51 per cent to Rs. 16,205 crores from Rs. 10,755 crores.

Buyback programme

The buyback programme of the company opened on January 10. Since then the company has bought back 26.69 lakh shares at an average price of Rs. 522 per share, amounting to Rs. 139.46 crores.

The net profit after consolidating the financials of subsidiaries is Rs. 5,360 crores against Rs 3,944 crores for the corresponding previous period, an increase of 36 per cent.

The increase in sales reflects the impact of an increase in product selling prices of 24 per cent, and increase in sales volume of 3 per cent, as compared to the corresponding previous period.

The operating profit, before other income, was Rs. 9,265 crores against Rs. 7,197 crores, an increase of 29 per cent.

The company's operating margin on net sales for the nine months maintained at 19 per cent due to higher product selling prices, productivity and efficiency offset by higher raw material prices.

Energy business strategy

RIL's oil and gas strategy is aimed at further enhancing the level of vertical integration in its energy business, and capturing value across the entire energy chain, while fulfilling important national priorities. It is the largest exploration acreage holder among the private sector companies in India in 30 domestic exploration blocks covering an area of about three lakh sq. km.

Retail outlets

As on date, over 280 retail outlets have been commissioned to market petroleum products.

The response from these retail outlets is encouraging, with significantly higher throughputs per outlet. By the end of March 2005, Reliance will have a significant presence in the retailing of transportation fuels.

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