The Hindu : Business : RIL half year net profit up

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Friday, Oct 19, 2007
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RIL half year net profit up

Special Correspondent

‘World-class assets deliver good operating performance’

MUMBAI: Reliance Industries Ltd (RIL) on Thursday reported a net pofit of Rs. 7,467 crore for the half year ended September 30, 2007, as against Rs. 5,706 crore for the corresponding period of the previous year, representing an increase of 31 per cent. Basic EPS (earnings per share) for the half year was Rs. 51.40 against Rs. 39.30 for the corresponding period of the previous year.

Commenting on the half yearly financial results, Mukesh D. Ambani, Chiarman and Managing Director of Reliance Industries said, “Reliance had another quarter of record earnings. Once again, our world-class assets have delivered a superior operating performance. Further, Reliance has extended its global footprint with the acquisition of GAPCO in East Africa and Hualon’s assets in Malaysia. Our investments in E&P, organised retail and development of special economic zones will all be the cornerstones for future growth.” RIL also submitted development plans for the NEC25 block, Sohagpur CBM Blocks (East and West) and MA oil fields (KG D6) to the DGH for approval.

‘Super site’

Reliance is extending its competitiveness with incremental investments of $8-9 billion towards the following projects: Setting up of a two-million tonnes per annum of olefins plant with matching downstream capacities; Setting up of the world’s largest integrated combined cycle coke gasification complex with a capacity of six million tonnes; Expanding its paraxylene capacity in two phases from 1.9 million tonnes to 4.5 million tonnes.

These projects, together with the two highly complex and world-scale refineries will make the Jamnagar complex, a “Super site”, stated a press release issued by RIL.

During the half year period ended September 30, 2007, the refinery processed 16.1 million tonnes, an increase of 3 per cent. The turnover for the half year was Rs. 64,692 crore, reflecting a growth of 9 per cent over the corresponding period of the previous year. During the period under review, aggregate exports were higher by 11 per cent at Rs. 37,074 crore.

The operating profit before other income increased by 18 per cent from Rs. 9,697 crore to Rs. 11,454 crore. The net operating margin for the period was 18.6 per cent as compared to 17.3 per cent in the corresponding period of the previous year. Other income was higher at Rs. 365 crore against Rs. 233 crore “primarily on account of increase in interest income on higher surplus funds.” Interest costs were lower by 7 per cent at Rs. 552 crore primarily on account of appreciation of the rupee vis-a-vis the U.S. dollar.

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