The company also reported a decline in the net profit and sales during the fourth quarter. Net profit declined by 11.46 per cent at Rs 672 crore as against Rs 759 crore for the same quarter last year. RIL saw a 3.86 per cent decline in sales at Rs 6,195 crore as against Rs 6,444 crore for the fourth quarter last year. EPS was Rs 6.4 as against Rs 7.2 for the corresponding quarter the previous year.
RIL managing director Anil Ambani said: We are encouraged by Reliances performance in the most challenging of times for the global and domestic petrochemicals industry. The year under review was characterised by uneven demand conditions, increased volatility in feedstock prices, and sharp declines in our product selling prices, as a result of global capacity additions.
RIL and Reliance Petroleum Ltd (RPL), which are to merge with retrospective effect from April 1, 2001, are currently awaiting high court approvals. However, the net profit of the merged entity during 2001-02 stood at Rs 4,488 crore, sales at Rs 58,149 crore and net worth at 26,250 crore.
Added Mr Ambani: Reliances ability to maintain its cash flows and profits in this difficult environment reflects the global competitiveness of its operations, our leadership in domestic markets, and a healthy presence in export markets.
The RIL share price on BSE went up by Rs 3.30 to close at Rs 290.6 on Tuesday. The shares at the opening of the day stood at Rs 292.9, while the high was Rs 294.8 and low was Rs 285. About 14.54 lakh shares were traded on the BSE on Tuesday.
Extraordinary income during the year stood at Rs 358 crore from the disinvestment of equity shares in Larsen & Toubro Ltd as against nil last year. Earnings per share (EPS) during the year stood at Rs 26.7 as compared to Rs 25.1 during the previous year.
The company said that the operating margin was stable at 19 per cent as a result of lower raw material prices partially offset by lower product prices and sales volume, greater focus on speciality products, continued focus on costs, productivity and efficiency, higher degree of integration and value additions and rationalisation of duties and rupee depreciation.
The margins improved by 20 basis points. The margin for 2001-02 was reported at 21.8 as compared to 21.6 for last year.
The consolidated net profit of RIL (excluding RPL), considering its investments in its subsidiaries and associates, was Rs 3,678 crore, while for the quarter ended March 31, 2002, it was Rs 883 crore, reflecting the full return on its investments. The consolidated sales was Rs 24,293 crore, and for the fourth quarter, it stood at Rs 6,198 crore.
According to Mr Ambani: The proposed merger of RPL with RIL will create an enterprise of truly global scale, thereby creating an even stronger platform for future growth. Our investments in oil and gas exploration and production, and the Infocom sector, together with the proposed entry into the retail marketing of petroleum products, are expected to generate attractive returns, thereby contributing to maximization of overall shareholder value.
The company said that in preparation of the consolidated financial results, more than 50 per cent owned subsidiaries other than those in which control is intended to be temporary and less than 50 per cent owned associates in which the company has signifcant influence are consolidated in accordance with the accounting standards.