Reliance Net Rises 30% In Q1

Mumbai, July 27 | Updated: Jul 28 2004, 05:38am hrs
Reliance Industries Ltd (RIL) has posted a 30 per cent increase in the net profit for the first quarter ended June 30, 2004 at Rs 1,437 crore as against Rs 1,104 crore for the first quarter for the previous financial year. The company reported a 17 per cent increase in the turnover for the reporting quarter at Rs 15,746 crore as compared to Rs 13,509 crore for the first quarter last year.

RIL vice-chairman and managing director Anil Ambani said that the net profit would have been higher by Rs 350 crore but for the depreciation of the rupee. The depreciation for the quarter was reported at Rs 916 crore as compared to Rs 700 crore for the corresponding previous quarter, on account of depreciation of asset capitalised in the previous financial year, the company said in a statement.

Backed by robust global demand for petroleum products, the company reported a 47 per cent increase in exports for the reporting quarter at Rs 5,102 crore as against Rs 3,466 crore for the first quarter last year. Earning per share stood at Rs 10.3 for the reporting quarter as compared to Rs 7.9 for the same period last year.

On the domestic front also, there are no signs of demand falling. However, what has to be watched out in the next nine months is the GDP growth and the rupee as its fuels the GDP he explained. According to Mr Ambani, the quarter has seen robust growth in petroleum products at a nine per cent growth. With the government implementing a ban on import of kerosene, the adulteration has reduced leading to increase in petroleum products consumption, he added.

The companys refining margin was seven per cent as against 5.2 in the previous quarter. On the price of global crude prices, Mr Ambani did not anticipate a huge respite in the crude prices. With the demand in winter to go up, the prices will remain very volatile, he said.

On RILs retail plans, he pointed out that the plans were on track and to date the company has launched 100 retail outlets (ROs); another 400 are under construction.

He claimed that throughout from RIL ROs were double as compared to the existing public sector oil companies.