IPCL Q3 Net Up 8% To Rs 81 Cr

Mumbai, Jan 28: | Updated: Jan 29 2004, 05:30am hrs
Indian Petrochemicals Corporation Ltd (IPCL), a Reliance group company, has reported an eight per cent rise in net profit at Rs 81 crore in the third quarter ended December 31, 2003, as compared to Rs 75 crore in the corresponding period last year.

Turnover has jumped 70.5 per cent to Rs 3,030 crore during the quarter as against Rs 1,777 crore in the same quarter last year. Total income (net of excise) has increased 78.8 per cent from Rs 1,574 crore to Rs 2,815 crore.

During the nine months ended December 31, 2003, IPCL reported a 53 per cent increase in net profit to Rs 174 crore from Rs 114 crore in the same period last year.

Commenting on the results, Mukesh Ambani, chairman, IPCL, said, We are happy with IPCLs sixth consecutive quarter of strong financial performance, post our acquisition of the company in June 2002. We believe that IPCL is poised to benefit from the forthcoming petrochemical upcycle which will see improvement in margins on the back of capacity rationalisation across the world. Earnings Per Share (EPS) for the nine months stood at Rs 7.01 and cash Earnings Per Share (CEPS) for was Rs 21.15. The companys production during the nine-month period under review was 3.53 million tonne against 3.1 million tonne during corresponding previous period, representing a 14 per cent growth. Gross turnover includes trading sales of Rs 1,204 crore. Trading activities mainly comprised export of petrochemicals and petroleum products. The increase in merchant exports was to explore growth opportunities available in emerging global market and to establish a presence in the international market, the company said in a press release.

Net turnover for the nine months excluding trading sales, interdivisional sales and excise duty recovered on sales increased 18 per cent to Rs 4,274 crore. The increase in net turnover reflects the impact of increase of 13 per cent in sales volume and 5 per cent in product selling price.

Operating margin for the quarter under review improved to 11.2 per cent from 10.2 per cent in the corresponding previous quarter as a result of higher volume, higher product selling prices and increased productivity. Operating margin for the nine months under review remained stable.