The Telegraph
Since 1st March, 1999
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Market movers make merry
Reliance score tops forecast

Mumbai, July 31: Reliance Industries (RIL) today delivered yet another thousand-crore quarter, racking up a 20 per cent jump in net profit at Rs 1,104 crore in the three months ended June against Rs 918 crore same time last year.

It whizzed past analysts expectations, which hovered around Rs 970 crore, on the back of strong sales.

The 20 per cent profit rise has been computed after netting off Rs 76 crore spent on a voluntary retirement scheme for employees at the companys Patalganga plant. The operating margin was marginally higher at 13.3 per cent for the quarter, achieved through a higher degree of integration and greater value-addition.

In petrochemicals, prices were soft, held down by the rash of strikes in user-firms, the transport gridlock and the Iraq war. Revenues from this segment at Rs 6939 crore were 6 per cent higher than Rs 6566 crore a year back.

Some of the bottomline boost in the first quarter came from a 14 per cent decline in interest paid at Rs 349 crore. Contributions from other businesses oil and gas, textiles, communication, power, finance & risk management also rose to Rs 854 crore from Rs 313 crore.

The combination of these factors propelled the gross turnover by 10 per cent to Rs 17,166 crore from Rs 15,576 crore same time last year. Net turnover jumped 17.38 per cent to Rs 12,501 crore (Rs 10,650 crore).

Company chairman and managing director Mukesh D. Ambani said he was happy with the robust set of numbers. We are satisfied with the strong performance in the first quarter.

Past 3,800 and back

The Reliance share vaulted Rs 8.95, or 2.56 per cent, to Rs 357.25, after opening at Rs 351 and peaking at Rs 361.70. The stock was among the days best performers on Dalal Street, where the sensex scaled the 3800-mark but wound up a choppy session with a 12.19-point gain at 3780.42. The broad-based BSE-100 index was fractionally down at 1893.45 from its previous close of 1894.37.

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