RIL Q4 net up 14%

Reliance Industries Ltd (RIL), the country's most valued company, announced today a 14 per cent increase in net profit for the fourth quarter of the last financial year, on a 5.5 per cent rise in net sales. The record performance was due to better margins from the refining and petrochemical businesses.

The company posted a net profit of Rs 2,853 crore for the quarter ended March 31, 2007, against Rs 2,502 crore in the year-ago period. Net sales grew to Rs 25,895 crore from Rs 24,542 crore last year. Earnings per share (EPS) stood at Rs 20.5, against the corresponding previous quarter's Rs 18.

During the quarter under review, profit before tax stood at Rs 3,485 crore, 19 per cent higher than the corresponding previous quarter's Rs 2,926 crore. 
 

ROBUST SHOW                                                      (In Rs crore)
	Q4,  FY 06	Q4, FY 07	Increase  (%)
Net profit	2,502	2,853	14
Net sales	24,542	25,895	5.5
PBT	2,926	3,485	19
EPS (in Rs)	18	20.5

RIL recorded a gross refining margin of $13 a barrel, against the corresponding previous quarter's $10.4 a barrel. The benchmark Singapore Index showed gross refining margin "" the money a company earns from processing a barrel of oil into fuel "" of $6.2 a barrel.

The RIL stock ended flat at Rs 1596.75 on the Bombay Stock Exchange. The results were announced after the close of the day's trading.

In the fourth quarter ended March 31, 2006, RIL's net profit growth was 9 per cent over the corresponding previous quarter.

For the full year ended March 31, 2007, Reliance posted 20 per cent growth in net profit, which went up to Rs 10,908 crore from Rs 9,069 crore in the previous year. Spurred by 11 per cent growth in prices and a 13 per cent rise in volumes, net sales during the period grew 30 per cent from Rs 81,211 crore to Rs 105,363 crore.

Chairman Mukesh Ambani said: "While our petrochemicals and refining business recorded its best-ever performance, we have made substantial investments in our future growth engines such as E&P (exploration and production) and retail businesses."

Ambani's statement added that in the past year, RIL created further value for its shareholders through a strategic investment in RPL (Reliance Petroleum) and the "value accretive merger of IPCL (Indian Petrochemicals) with Reliance".

Analysts said Reliance managed to post a record performance owing to its ability to handle its huge operations efficiently.

The company's revenues for the petrochemical business, the main money spinner, increased 36 per cent from Rs 31,014 crore to Rs 42,226 crore over the previous year. Higher prices accounted for 16 per cent of the growth and higher volumes 20 per cent.

During the fourth quarter, revenues from petrochemicals increased 21 per cent to Rs 10,670 crore from Rs 8,820 crore in corresponding quarter of 2006.

The company's exports doubled to Rs 65,300 crore in the financial year ended 2007, more than the combined exports of the top 10 information technology companies. Exports accounted for 57 per cent of aggregate refinery product volumes.

During the fourth quarter, Reliance exported 4.2 million tonnes of petroleum products and recorded export revenues of $ 2.84 billion, a growth of 29 per cent and 63 per cent in volume and value respectively.