Reliance Industries (RIL) has reported a 16.5 per cent rise in net profit for the first quarter ended June 30, 2002 at Rs 720 crore versus Rs 618 crore in the first quarter of the previous year despite flat income from operations. RIL's consolidated net profit was 15.23 per cent higher at Rs 991 crore, after taking into account the returns on its investments in subsidiaries and associates.
Sales for the quarter, excluding trading sales, stood at Rs 6,397 crore (Rs 6,390 crore in the corresponding previous quarter). However, inventories during the quarter increased substantially to Rs 417 crore (Rs 174 crore in same period last year).
RIL pruned its interest costs to Rs 225 crore (compared with Rs 257 crore in the quarter ended June 2001) by refinancing high cost debt. As a result, operating profit (PBDIT) for the quarter increased 7 per cent to Rs 1,394 crore (Rs 1,302 crore), RIL said in a press statement.
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RIL chairman and managing director Mukesh Ambani said: "We are happy with Reliance's performance in an environment that witnessed improved operating conditions for the global and domestic petrochemicals industry."
Cash profit increased 11 per cent to Rs 1,125 crore against Rs 1,014 crore, while the earnings per share (EPS) for the quarter increased to Rs 6.80 from Rs 5.90 in the same quarter of last year. The annualised EPS, therefore, comes to Rs 27.30.
During the quarter, product selling prices increased only 2 per cent whereas the sales volume decreased one per cent. Sales in the quarter include inter-divisional transfers of Rs 1,397 crore (Rs 1,297 crore during the corresponding previous quarter).
Other income was marginally lower at Rs 124 crore (Rs. 127 crore). The company said the Mumbai High Court had cleared the merger with Reliance Petroleum but the Gujarat High Court had yet to clear it.
Mukesh new chairman
Mukesh Ambani on Wednesday took over as the chairman of Reliance Industries. Mukesh was elevated to the post of chairman and managing director, from vice-chairman and managing director. Younger brother Anil, who was the managing director, has been redesignated vice-chairman and managing director.
Other income boosts Reliance Petro net 5%
Reliance Petroleum has posted a 5.26 per cent growth in net profits for the first quarter ended June 30, 2002, significantly boosted by a 300 per cent increase in other income.
Net profits for the quarter increased to Rs 480 crore (Rs 456 crore during the same quarter last year). Sales during the period increased 6.86 per cent to Rs 9,474 crore (Rs 8,865 crore).
The profits have been higher than analysts' expectations owing to the surge in other income, which shot up to Rs 96 crore (Rs 24 crore). The company attributed the growth in other income to a "higher investible surplus."
The company processed 7.45 million tonne of crude (7.3 million tonne in first quarter of 2001-2002) to achieve a capacity utilisation of 111 per cent, although domestic petroleum consumption grew only 0.8 per cent during the period, it said in a press statement.
Analysts said the company's refining margins, which were in the region of $5.2 per barrel of crude, came under pressure during the quarter.
The company's exports touched Rs 1,965 crore, the highest in the domestic corporate sector. During the quarter, sales of naptha and kerosene fell 9.5 per cent and five per cent, respectively, while that of LPG and petrol grew 9.7 per cent and 10.5 per cent, respectively.
RPL, which has already obtained the marketing rights for petrol, diesel and aviation turbine fuel (ATF), said in the press statement, "The grant of authorisation of marketing transportation fuels, dismantling of APM and the proposed disinvestment of HPCL and BPCL offer tremendous opportunities for RPL to enter the business of retail marketing of petroleum products."
RPL, which has already signed a product offtake agreement with Indian Oil, HPCL and BPCL for about 13 million tonne of petrol, diesel, kerosene and LPG for a period of another two years, said it proposes to enter retail marketing over the "medium to longer term".