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RIL targets to double operating profit; invests Rs 1 lakh cr

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Press Trust of India Mumbai
Last Updated : Jan 24 2013 | 1:49 AM IST

RIL aims to increase revenue from retail business by as much as six times in 3-4 years and is targeting a ten-fold increase in sales from its shale gas business in the US, Chairman Mukesh Ambani told company shareholders here today.

It is investing over USD 12 billion in the refining and petrochemical industries and has drawn plans to double natural gas output from its flagging KG-D6 fields to 60 million cubic meters a day on a "sustained" basis.

RIL, which once was India's most valuable firm, has reported two straight quarters of decline in net profit, its shares are near a 3-year low, and a mounting cash pile has made investors wary of its outlook.

"I have set myself the target to double the operating profit of your company in about five years," Ambani said.

Operating profit fell 9 per cent to Rs 22,225 crore in the year ended March 31, the first decline since 2003. Standalone net profit was down to Rs 20,040 crore in 2011-12 from Rs 20,286 crore a year earlier.

"We are now ready for the next period of growth at Reliance by investing across all our core businesses in new capacity and margin improvement projects," Ambani told the company's annual general meeting.

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The firm will "invest nearly Rs 1 lakh crore over the next five years to build a stronger and more diversified Reliance," he said.

Ambani, the richest Indian, said high rates of inflation, adverse foreign exchange rate movements, continuing fuel subsidies and slowdown in rate of economic growth has had an impact on doing business in the country. MORE

  

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First Published: Jun 07 2012 | 1:55 PM IST

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