No merger of IPCL with Reliance now: Mukesh

Reliance chairman Mukesh Ambani today ruled out any merger, at present, of Indian Petrochemicals Corporation (IPCL), with Reliance, but said the IPCL board can take a decision on it.

"At present, there is no plan of merger. However, the IPCL board can take a decision on it," he said while addressing the 36th AGM of IPCL in the city today.

Mukesh said IPCL would yield better results and dividends in subsequent years, and asked shareholders to watch the company's performance.

Shareholders who spoke at the AGM demanded increased dividends. They said that group of companies, now headed by Anil Ambani, were performing well and giving good dividends, and expected Mukesh to do the same.

They complained that despite good performance by IPCL, the dividend of 45% was not enough.

In his reply, Mukesh said: "Our job is to perform well, and it is for the market to decide." He also asked them to have patience.

IPCL registered over seven-fold increase in net profit from Rs 107 crore in 2001-2002 to Rs 786 crore in 2004-2005, Ambani said.

The net profit of Rs 786 crore was the highest ever achieved by IPCL, he said, and added that EPS has shot up from Rs 11.02 in FY04 to Rs 31.65 in FY05.

Outstanding debt has been reduced to Rs 760 crore as on March 31, 2005 from Rs 2,166 crore on March 31, 2004. Interest cost was brought down by 61% to Rs 81 crore, he added.

This was Mukesh's first visit to IPCL after his settlement with brother Anil on the onwership issue.