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Reliance first quarter net up at Rs. 3,264 cr.

MUMBAI: Reliance Industries Ltd (RIL) on Saturday reported a net profit of Rs. 3,264 crore for the first quarter ended June 30, 2007, as compared to Rs. 2,547 crore in the comparable period in the previous year, an increase of 28.2 per cent. The turnover increased by 12.7 per cent to Rs. 29,493 crore and the cash profit by 23.7 per cent to Rs. 4,527 crore.

“Our world class manufacturing facilities have demonstrated a high operating leverage by delivering superior margins and record profits. We continue to make rapid strides in our new initiatives including oil and gas, organised retailing and the new refinery at Reliance Petroleum. While our existing businesses continue to deliver a robust operating performance, our new initiatives provide us a platform to deliver superior shareholder returns in the future,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries.

During the quarter, the refinery processed 8.01 million tonnes, an increase of seven per cent, reflecting an operating ratio of 97 per cent. Petrochemicals production (including toll conversions) grew 15 per cent to 3.65 million tonnes, from 3.16 million tonnes in the corresponding period in the previous year. Oil production from the PMT blocks increased by 25 per cent to 1.48 lakh tonnes and gas production was up 23 per cent at 317 MMSCM.

The increase in revenue was due to a three per cent rise in prices and 10 per cent growth in volume. During the period under review, aggregate exports were higher by 30 per cent at Rs. 17,263 crore. Consumption of raw materials increased by 10 per cent from Rs. 18,152 crore to Rs. 19,999 crore primarily on account of higher crude prices.

The operating profit before other income increased by 22 per cent to Rs. 5,177 crore from Rs. 4,237 crore. Net operating margin for the quarter was 18.5 per cent as compared to 17.3 per cent. Other income was higher at Rs. 105 crore against Rs. 44 crore primarily on account of increase in interest income on higher surplus funds. Interest costs were higher by 8 per cent at Rs. 288 crore.

Depreciation was higher at Rs. 958 crore against Rs. 907 crore on account of additional assets capitalised during the period. Basic earnings per share (EPS) for the quarter were Rs. 23.4 against Rs. 18.3 in the corresponding period of the previous year.

During the quarter, the company incurred a capital expenditure of Rs. 3,862 crore. With the completion of major expansion plans in the refining and petrochemicals business, the capital expenditure was largely for the oil and gas initiatives. The common capital expenditure of Rs. 885 crore during the quarter was mainly on account of real estate for office purposes.

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