RIL Q3 net up 58% at Rs 2,799 crore

Updated: Jan 22 2007, 06:08am hrs
Indias largest private sector company Reliance Industries Ltd (RIL) on Thursday surprised analysts with an impressive 58% increase in Q3 net profit to Rs 2,799 crore, compared with Rs 1,776 crore in Q3 FY06.

The numbers were propped up by high gross refining margins of $11.70 a barrel in the quarter ($8 more than the Singapore benchmark) and 141% growth in exports. Higher volumes from the chemicals business at a time when chemical prices were reigning high, also helped fuel the companys revenues.

RILs turnover for the quarter rose 40%, from Rs 19,899 crore in Q3 FY06 to Rs 27,771 crore. Turnover for the nine-month period ending December 2006 stood at Rs 83,487 crore. With this, RIL is set to cross Rs 1,00,000 crore in turnover this fiscal, said company sources.

RILs other income during the period was lower at Rs 42 crore from Rs 180 crore. Its exports grew from Rs 6,638 crore to Rs 16,013 crore in the quarter. The companys stock rose 1.27% on the Bombay Stock Exchange on Thursday to close at Rs 1,367, touching an intra-day high of Rs 1,383.

RILs Q3 results are undoubtedly above expectations and it is mainly due to the GRMs at $11.70 a barrel per day. Everyone had expected the GRMs to be at $8, said a Mumbai-based analyst.

FOREQUOTE

All indicators show the GDP will log close to 9% and the current account deficit will be about 1.5% of the GDP. Exports and imports will touch about 39% of the GDP...
C Rangarajan, Chairman, PMs Economic Advisory Committee

C Rangarajan, chairman of the Prime Ministers Economic Advisory Council, was speaking at a seminarProspects for the World Economy after the Recent US Electionsjointly organised by the CII and Columbia Business School in New Delhi on January 19.

He also said the developments in the US economy were a matter of interest adding that India had a current account surplus of $25 billion with the US implying that it had the capacity to import more with the domestic savings rate touching about 32% this fiscal.

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