MUMBAI: Reliance Industries Ltd. (RIL) has announced a net profit of Rs. 2,547 crore for the first quarter of 2006-07, a 10 per cent increase over the same period of the previous year when it was Rs. 2,310 crore. The turnover was up 32 per cent at Rs. 26,166 crore (Rs. 19,884 crore).

The operating profit was up 14 per cent at Rs. 4,281 crore (Rs. 3,760 crore), having been impacted by higher raw material costs in spite of higher selling prices.

Other income dropped to Rs. 44 crore (Rs. 194 crore) on account of a decline in interest income due to utilisation of surplus funds for investment in RPL. The employee cost increased to Rs. 318 crore (Rs. 253 crore) because of performance linked incentives and increments.

Production of oil and gas and petrochemicals, including toll conversion at 3.52 million tonnes, was up seven per cent and exports were up by a significant 86 per cent at Rs. 13,270 crore (Rs. 7,144 crore).

According to Mukesh Ambani, Chairman, RIL, "It has been an excellent quarter for RIL. All our businesses have recorded a robust performance in a challenging environment." RIL recorded 91 per cent capacity utilisation at its Jamnagar refinery and processed 7.51 million tonnes of crude.

The capacity utilisation was affected by a scheduled maintenance shutdown in May. Exports of refined products touched $2.26 billion and the period saw huge pressure on RIL's retail marketing business as a result of unprecedented rise in crude oil prices and inadequate increase in selling prices of gasoline and diesel.

During the quarter, production of paraxylene, PTA (purified terephthalic acid) and MEG (mono ethylene glycol), all polyester intermediates, at 8.86 lakh tonnes increased by 11 per cent and the company commissioned a 7.30 lakh tpa PTA plant at Hazira in July.

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