The Hindu : Business : Reliance Industries net profit rises to Rs. 19,458 crore

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Tuesday, Apr 22, 2008
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Reliance Industries net profit rises to Rs. 19,458 crore

Special Correspondent

Pays 130 per cent dividend which will result in a payout of Rs. 1,860 crore

18 per cent rise in turnover
Exceptional gains at Rs. 4,733 crore

MUMBAI: Reliance Industries Ltd (RIL) reported a net profit (profit after tax), including exceptional item, at Rs. 19,458 crore for the year ended March 31, 2008, as against Rs. 11,943 crore in the previous year.

The net profit, excluding exceptional item, was Rs. 15,261 crore, an increase of 28 per cent.

Exceptional item of Rs. 4,733 crore represents gains primarily arising out of transactions concerning Reliance Petroleum Limited shares. The transactions were conducted through stock exchanges and have helped further broadbase the shareholding pattern of RPL.

The sale of shares monetises only a fraction of RIL’s holding in RPL, at the same time increasing free float in the market. This has unlocked value for RIL shareholders. RIL now holds 70.38 per cent of RPL’s equity, RIL stated in a press release on Monday.

Cash profit increased by 43 per cent to Rs. 25,205 crore. The dividend of 130 per cent would result in a payout of Rs. 1,860 crore. Gross refining margin was $15 a barrel for 2007-08. Last year, the company paid a dividend of 110 per cent.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries, said: “This was a landmark year for Reliance as we delivered record financial and operating performance in challenging and volatile market conditions. Our key investments in oil and gas development and refining are expected to yield results this year. I expect them to be key drivers to deliver earnings growth in the near future.”

The turnover was Rs. 139,269 crore reflecting a growth of 18 per cent over the previous year. The increase in revenue was due to a 12 per cent increase in prices and a 6 per cent growth in volumes. During the year, exports were higher by 25 per cent at Rs. 83,492 crore.

The operating profit, before other income, increased by 16 per cent from Rs. 20,046 crore to Rs. 23,306 crore. Net operating margin for the period was 17.5 per cent as compared to 17.9 per cent in the previous year. Other income was higher at Rs. 895 crore against Rs. 478 crore primarily on account of increase in interest income. Interest costs were lower by 9 per cent at Rs 1,077 crore primarily on account of appreciation of the rupee vis-À-vis the U.S. dollar. During the year, the rupee appreciated by 7.7 per cent against the U.S. dollar. Moreover, 85 per cent of RIL’s debt is foreign currency denominated. During the year, Rs. 885 crore of interest was capitalised, as against Rs. 535 crore.

The outstanding debt as on March 31, 2008, was Rs. 36,480 crore compared to Rs. 27,826 crore as on March 31, 2007. Net gearing was 22.3 per cent as compared to 25.2 per cent.

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