Treasury contributed 40% to RIL's Rs 21,984-crore FY14 profit

The treasury operations contributed Rs 8,936 cr of the total profit during the previous financial year

About 40 per cent of Reliance Industries' Rs 21,984-crore profit during FY 2014 came from treasury operations or other income, according to the annual numbers unveiled by the company. Treasury operations contributed Rs 8,936 crore or 40.53 per cent of the total profit during the previous financial year.

Similarly, the share of treasure operations was Rs 2,036 crore towards January-March profit of Rs 5,631 crore.

The net profit for the full financial year rose 4.7 per cent to Rs 21,984 crore, the highest by any private sector firm in the country. In FY 2013, the contribution of treasury income to the total profit was 37.14 per cent at Rs 7,800 crore, according to the financial results announced by the company over the weekend.

For the past many years a chunk of RIL's profit has come from its treasury operations, thanks to Rs 88,190 crore cash pile it is sitting on, making it one of largest treasury dealers in the country.

The company had a debt of Rs 89,968 crore at the end of Q4, up from Rs 72,427 crore at the beginning of the financial year.

Reliance Industries, as of FY 2014, had current investments of Rs 33,370 crore, up from Rs 28,366 crore a year ago. Trade receivables stood at Rs 10,664 crore, down from Rs 11,880 crore.

Cash balances dip
Cash and bank balances dipped to Rs 36,624 crore from Rs 49,547 crore. The company's total assets stood at Rs 3,67,583 crore, up from Rs 3,18,511 crore. FY 2014 also saw the company reporting a record revenue of Rs 4,01,302 crore, up 8.1 per cent from FY 2013. This comes even as its profit from oil and gas business plunged 17.8 per cent to Rs 378 crore in the March quarter due to a fall in KG-D6 production due to "geological complexity and natural decline in the fields and higher than envisaged water ingress."

RIL, which operates the world's biggest refining complex at Jamnagar in Gujarat, earned $9.3 on turning every barrel of crude oil into fuel in the March quarter, compared with a gross refining margin of $10.1 a barrel a year earlier and $7.60 a barrel in the preceding three months.