Sales during the reporting quarter also decreased by 10.74 per cent at Rs 8,166 crore as compared to Rs 9,149 crore during the corresponding period previous year. Other income during the quarter was lower at Rs 65 crore as compared to Rs 71 crore during the same quarter the previous year.
Earning per share reduced from Rs 0.86 per share to Rs 0.77 per share. The company reported a sharp increase in inventory at Rs 443 crore from Rs 47 crore.
During the nine month period ended December 31, 2001, RPL reported a 17.5 per cent increase in the net profit at Rs 1,269 crore as compared to Rs 1,080 crore for the same period the previous year. Sales during the nine month period increased by 8.69 per cent at Rs 25,497 crore as against Rs 23,457 crore for the same period the previous year.
Commenting on the results, RPL managing director Anil Ambani said, “We are encouraged by RPL’s operating environment. We believe that RPL’s inherent operational strengths and the opportunities offered by the proposed deregulation will enable the company to further improve its performance and enhance overall shareholder value.”
During the nine month period, RPL maintained its capacity utilisation at a record level of 107 per cent, processing 21.8 million tonne of crude. The company in a statement said that the higher utilisation is particularly noteworthy considering the depressed domestic and global demand for petroleum products and demonstrates RPL’s inherent strengths in maintaining its performance even in adverse market environment.
The company added that the medium to long term outlook for overall demand for petroleum products in India remains strong, despite the short-term sluggishness in demand for some products.
RPL’s exports during the nine months period stood at Rs 6,001 crore, the highest in the corporate sector.
The company added that it has already applied for marketing rights for the controlled product, as it meets all the criteria specified by the government in this regard. RPL said that it proposes to enter the business of retail marketing of controlled products in India, once it is granted the marketing rights. The company is presently evaluating a multi-pronged strategy, encompassing — potential joint ventures and alliances, acquisitions of marketing and distribution assets and development of its own distribution and marketing infrastructure.
During the reporting quarter, Reliance Strategic Investments became a 100 per cent subsidiary of the company.