Mumbai, July 27: Reliance Industries has posted a 61 per cent jump in first-quarter net profit at Rs 2,310 crore compared with Rs 1,437 crore in the corresponding previous quarter. Gross turnover rose 26 per cent to Rs 19,884 crore, while net turnover was Rs 17,784 crore.
The Reliance board, chaired by Mukesh Ambani, met today amid torrential rains that has brought the city to a standstill. The Maharashtra government was forced to declare today and tomorrow as holidays.
Operating profit increased 19 per cent to Rs 3,760 crore from Rs 3,152 crore for the corresponding previous quarter. Earnings per share (EPS) for the quarter was Rs 16.6 while the cash earnings per share (CEPS) was Rs 23.5.
The company contributed 15 per cent more at Rs 3,659 crore ($841 million) in taxes to the national exchequer against Rs 3,195 crore in the corresponding previous quarter.
Reliance’s production of oil & gas and petrochemicals, including toll conversion, was 3.18 million tonnes during the quarter.
The company’s refinery operated at 96 per cent capacity utilisation and processed 7.92 million tonnes of crude during the quarter.
“Rise in sales reflects the impact of a 21 per cent increase in product selling prices and also a 5 per cent hike in sales volumes compared with the corresponding previous quarter,” the company said.
Exports, including those in the deemed category, rose 40 per cent to Rs 7,144 crore ($1,642 million) from Rs 5,102 crore in the corresponding previous quarter.
Operating profit, before other income, increased 27 per cent to Rs 3,566 crore compared with Rs 2,805 crore for the corresponding previous quarter.
The company’s net operating margin improved during the quarter to 20 per cent despite volatile raw material rates. This was offset by higher selling prices and cost control measures.
Other income fell to Rs 194 crore from Rs 347 crore because the company converted the preference shares of Reliance Infocomm with effect from April 1, 2005. This was partially offset by higher interest income from liquid investments and fixed deposits.
Interest expenditure decreased 49 per cent to Rs 237 crore due to appreciation of the rupee and reduction in debt.
Depreciation stood at Rs 791 crore compared with Rs 916 crore for the corresponding previous quarter. The decrease is on account of assets sold during 2004-05 and impact of depreciation on petrochemical assets.
Outflow on account of capital expenditure, primarily in oil and gas exploration, retail outlets and petrochemicals expansion, was Rs 2,100 crore.
Domestic demand for petroleum products fell 2.3 per cent in the quarter. The company recorded a 9.6 per cent growth in the corresponding period last year.
Refinery margins were robust as product prices were higher than the hike in crude prices.
The company exported 2.46 million tonnes from its refineries, down from 2.55 million tonnes in the year-ago period.
Reliance has decided to close its ongoing share buyback from August 2, five months ahead of the proposed closure on January 10, 2006.