The Hindu Business Line : Reliance full year net tops Rs 10,000 crore

The growth was primarily on account of higher refining margins, revenues from its petrochemicals and refining business showing flat growth on the whole.

RIL's net profit, for the quarter ended March 2007, amounted to Rs 2,853 crore, up from Rs 2,502 crore in the corresponding year-ago quarter.

Net turnover rose 5.5 per cent, to Rs 25,895 crore (Rs 24,542 crore).

Gross refining margins were $13/bbl, up from $10.4/bbl in the year-ago quarter. This helped earnings before interest & tax (EBIT) rise 31 per cent, to Rs 2,227 crore; despite a 1 per cent fall in gross revenues from refining and marketing(R&M), to Rs 21,069 crore. EBIT margins from the segment rose to 10.8 per cent, up from 8.2 per cent.

The second largest business segment of the company — petrochemicals — reported a dip in EBIT margin, at 10.7 per cent, down from 12.1 per cent, though EBIT itself rose 7 per cent, to Rs 1,137 crore. Gross revenues from this segment rose 21 per cent, to Rs 10,670 crore.

For the fiscal as a whole, RIL's net profit rose 20 per cent, crossing the Rs 10,000-crore mark, at Rs 10,908 crore, up from Rs 9,069 crore the previous fiscal. Turnover amounted to Rs 1,10,886 crore, rising 24 per cent. Operating profit before other income rose 27 per cent, to Rs 18,210 crore (Rs 14,299 crore). But net operating margins fell to 17.3 per cent, against 17.6 per cent.

R&M revenues grew 21 per cent to Rs 86,009 crore, and the segment EBIT went up 31 per cent (Rs 7,726 crore), accounting for 53 per cent of the EBIT of the company for the year.

The refining margin for the full year was $11.7 bbl ($10.3 bbl)

To overcome challenges of the domestic market, RIL said it shifted focus to export markets which saw volumes go up 63 per cent to 17.7 million tonnes (mt), and revenues go up 92 per cent

During the year, the petrochemicals division's revenues rose 36 per cent, to Rs 42,226 crore (Rs 31,014 crore), 20 per cent of it due to volumes and 16 per cent due to prices.

EBIT increased 26 per cent, to Rs 5,395 crore. But margin pressure on PTA, PVC and polyester products saw EBIT margin declining to 12.8 per cent from 13.8 per cent.

Other income for the fiscal was lower at Rs 193 crore (Rs 683 crore), due to decrease in interest income because of utilisation of surplus funds for investment in Reliance Petroleum, said a statement from the company.

Interest costs were 27 per cent higher, at Rs 1,114 crore, due to increased borrowings.

Depreciation too was higher at Rs 4,009 crore (Rs 3,401 crore) on account of assets capitalised during the year.

Crude processed increased by 4 per cent from 30.5 (mt)to 31.7 mt, with the operating rate being 96 per cent for the refinery.

Petrochemicals production, including toll conversions, for the year rose 16 per cent, to 14 mt(12.1 mt).

Oil production rose 19 per cent, to 5.47 lakh tonnes (4.61 lakh tonnes) and gas production was up 13 per cent, to 1,140 mmscm from 1,012 mmscm.

More Stories on : Financial Performance | Petroleum | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Dust storms unable to bring down mercury

Suzlon's 44 wind turbines shut down in Maharashtra

Abridged balance sheets for shareholders

FIPB ruling on Vodafone-Hutch deal likely today

India now a trillion-dollar economy

Indian mango on way to US markets

Reliance full year net tops Rs 10,000 crore

`Commercial property rentals in tier-1 cities still rising'

AOL launches Indian portal

Rs 65 hike in paddy MSP proposed

Hopes on financial results lift bank stocks

TV remote may soon double as phone