Reliance net up 30% to Rs 1,437 crore

First quarter sales climb 14.23% to Rs 14,280 crore.

Buoyed by higher prices of petrochemicals and transportation fuels, Reliance Industries, India's largest private sector company, has posted a 30.15 per cent jump in its net profit to Rs 1,437 crore in the quarter ended June 2004, up from Rs 1,104 crore in the corresponding quarter of the previous year.

Net sales increased by 14.23 per cent, to Rs 14,280 crore in the June 2004 quarter, up from Rs 12,501 crore in the comparable previous quarter.

In a media statement, Reliance Industries Vice-Chairman and Managing Director Anil Ambani said, "Operating conditions in both our major businesses, refining and petrochemicals, remain strong, and, barring unforeseen circumstances, we are looking forward to another year of record-breaking financial performance from Reliance."

The company's other income jumped by 85.56 per cent to Rs 347 crore in the quarter ended June 2004, from Rs 187 crore in the quarter ended June 30, 2003. The other income rose on investments, which mainly represents interest and premium accrued on preference shares.

Ambani said, "The company's net profit would have been higher by at least Rs 350 crore but for the rupee's depreciation."

The Reliance Industries stock hit an intra-day high of Rs 483, before closing 2.65 per cent lower at Rs 464.95 on the Bombay Stock Exchange (BSE).

Ambani said the company had posted "strong export growth". Exports, including deemed exports, increased 47 per cent to Rs 5,102 core from Rs 3,466 crore in the corresponding quarter last year.

"We contribute 5 per cent to the country's total exports. In the first quarter, the country has shown robust growth in exports of close to 15-20 per cent. We have more than tracked it. We have chosen markets taking into consideration long-term relationships," Ambani added.

During the quarter ended June 2004, Reliance Industries' interest outgo jumped 34 per cent to Rs 468 crore owing to exchange rate fluctuations and higher average debt.

Depreciation stood at Rs 916 crore compared with Rs 700 crore during the corresponding quarter of the previous year on account of depreciation on assets capitalised in the previous financial year.

Ambani said the company's average refining margin of about $7 per barrel during the quarter under review compared with $5.50 per barrel in the corresponding quarter last year.

The company processed 7.91 million tonnes of crude and achieved 118 per cent capacity utilisation of the original 'nameplate' design capacity of 27 million tonne per annum. The company has raised the refining capacity to 33 million tonnes per annum by debottlenecking.

On excise duty recovered on sales to public sector oil marketing companies, Ambani said the company was still in discussions with the government on recovering the amount.

During the quarter under review, the excise duty recovered on sales stood at Rs 1,466 crore compared with Rs 1,008 crore in the same quarter of the previous year.

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