RNRL net at Rs 4.07 cr

Reliance Natural Resources has posted net profit of Rs 4.07 crore during the quarter ended June 30, 2006, with net sales of Rs 12.73 crore.

The company, which recorded a total income of Rs 20.13 crore including other income of Rs 7.39 crore during the period under review, posted an operating profit of Rs 8.46 crore.

Since the company got listed this financial year, the comparative quarter results are not available. During the first quarter, the company had posted net profit of Rs 1.03 crore with a total income of 7.08 crore.

Reliance Natural Resources, one of the entities that have come into existence following the split of the Reliance business empire between the Ambani brothers Mukesh and Anil, has been listed on the Bombay Stock Exchange and the National Stock Exchange as part of the Anil Dhirubhai Ambani Group.

According to a draft information memorandum filed by Reliance Natural Resources with the stock exchanges, the company had signed a gas-supply master agreement with Reliance Industries.

The agreement sets the basis for determining the quantities of gas to be made available by Reliance Industries to Reliance Natural Resources, its pricing and terms and conditions.

Reliance Industries proposes to use a part of its gas discoveries for power generation of ADAE's Reliance Energy Ltd and Reliance Patalganga Power Ltd. Reliance Natural Resources, the gas-based energy undertaking of Reliance Industries, will be the vehicle for supply of gas to Reliance Energy and Patalganga.

According to the agreement, Reliance Natural Resources can buy gas up to 28 mmscmd (million standard cubic meters per day) from Reliance Industries. The terms and conditions for supplying the gas are similar to those of Reliance's agreement with NTPC for supply of 12 mmscmd of gas.

The company had in May this year proposed to make an international offering of foreign currency convertible bonds (FCCBs) to the tune of $250 million, with a green shoe option of an additional $ 50 million, aggregating upto $ 300 million.

Though the conversion price of the FCCBs was proposed at a premium of 20 per cent to the closing price of the company's equity share on May 09, 2006, it had changed the same to 30 per cent to the current market price of its equity shares in view of the changed market conditions.