The Telegraph
Since 1st March, 1999
Email This Page
RIL number magic stuns all

Mumbai, April 26: Reliance Industries today set a number of records with its financial performance, posting the highest-ever revenues, profits and exports by any private company in the country.

RIL has become the first private firm to cross the $25-billion-mark in turnover. The company posted a turnover of Rs 1,10,886 crore ($25.7 billion dollar) during 2006-07, recording a growth of 24 per cent over the previous year’s Rs 89,124 crore.

The company reported the highest-ever net profit for a private firm in the country at Rs 10,908 crore for 2006-07, a rise of 20 per cent over Rs 9,069 crore in the previous fiscal.

The Mukesh Ambani group firm also set a record in exports, which stood at $15.02 billion for 2006-07.

For the fourth quarter, Reliance beat analysts’ estimates by posting a 14 per cent rise in net profit at Rs 2,853 crore against Rs 2,502 crore in the same period last year.

Analysts estimated the company’s net profit for the quarter between Rs 2,700 and Rs 2,800 crore. RIL recorded a 5.51 per cent rise in net turnover at Rs 25,895 crore against Rs 24,542 crore in the corresponding quarter last year.

The company earned $13 on processing every barrel of oil in the January-March quarter compared with $10.4 a year ago, reflecting a premium of $6.2 per barrel to the benchmark Singapore margin. Reliance has been consistently outperforming the benchmark margin.

The success has been attributed to the refinery’s capability to process heavier and sour crude.

Reliance chairman Mukesh Ambani said, “I am pleased to report yet another year of robust performance by RIL. The year 2006-07 has been eventful for the company. While our petrochemicals and refining business recorded its best-ever performance, we have made substantial investments in our future growth engines such as exploration & production and retail businesses.”

Reliance said the petrochemicals business also benefited from expanded capacities, strong demand from end-use segments and better price across the value chain.

Revenues from the business went up 21 per cent at Rs 10,670 crore during the fourth quarter against Rs 8,820 crore in the same quarter last fiscal.

“We saw fairly satisfactory results in the petrochem business, though margins were bit low,” the company said.

During the year, petrochemical margins were volatile with those of polymer and polyester products varying with respect to trailing quarters.

Polymer margins were at historical highs during the second quarter primarily due to lower naphtha cracks.

During the quarter, RIL processed 8.1 million tonnes of crude, reflecting an average utilisation of over 98 per cent.

It exported 4.2 million tonnes of petroleum products and recorded export revenues of $2.84 billion, reflecting a growth of 29 per cent and 63 per cent in volume and value respectively.

Stating that the company would focus on exports, RIL said as of now, it was not considering increasing the number of retail outlets in the country. However, it did not rule out such a possibility in the future.

Email This Page