The Hindu Business Line : Reliance Q2 net up 26 pc at Rs 1,263 crore

Mr Anil Ambani, Vice-Chairman & Managing Director, Reliance Industries Ltd, at a press conference announcing the company's half yearly results in Mumbai on Thursday. - Shashi Ashiwal

Mumbai , Oct. 16

HIGHER revenues from its petrochemical and refining businesses have led to a 26 per cent increase in the net profit of Reliance Industries Ltd at Rs 1,263 crore for the second quarter ended September 30, 2003, as against Rs 1,002 crore in the same period last year.

RIL's net turnover for the quarter stood at Rs 12,693 crore (Rs 11,519 crore) while other income was Rs 251 crore (Rs 204 crore). Petrochemicals and refining and marketing form 98 per cent of RIL's revenues.

The company has planned annual capital expenditure of Rs 1,250 crore in petrochemicals and Rs 1,500 crore in refining and marketing, Mr Anil Ambani, Vice-Chairman and Managing director, RIL, told reporters on Thursday.

Mr Ambani said the company would invest Rs 2,500 crore annually in exploration and production, which is expected to grow at 10-15 per cent per year. It would add incremental annual revenues worth Rs 10,000 crore in the next 3-4 years. He said RIL had drilled eight wells at the Krishna-Godavari basin. Drilling has been completed and production at the wells is expected to begin early next year.

For the second quarter, RIL's earnings per share stood at Rs 9 (Rs 7.10). For the half year ended September 30, 2003, the EPS was Rs 17 (Rs 13.7).

Total expenditure for the quarter was Rs 10,262 crore (Rs 9,366 crore) while interest payments stood at Rs 351 crore (Rs 413 crore). Tax provision for the quarter was Rs 290 crore (Rs 285 crore) and depreciation was Rs 778 crore (Rs 657 crore). The company has reported an extraordinary expense of Rs 31 crore during the quarter. Extraordinary expenditure of Rs 107 crore for the half year includes Rs 78 crore and Rs 29 crore paid towards voluntary retirement schemes for workers and staff at Patalganga and Naroda, respectively.

For the half year ended, RIL's net profit stood at Rs 2,367 crore (Rs 1,920 crore) while net turnover was Rs 25,194 crore (Rs 22,169 crore).

RIL will invest Rs 1,200 crore in setting up oil-retailing network, comprising a first phase of 1,500 outlets, by June 2004. These will have four to five times the throughput of existing outlets, Mr Ambani said.

He said although the company may look at acquiring crude equity in countries geographically closer to India, RIL would not look at acquiring gas fields. "We believe that by 2015-20, India will become a net exporter of gas," he said.

He reiterated the company's plans to set up gas transmission pipelines from Kakinada to Gujarat. RIL has bid for NTPC's tenders for LNG supply to its Kawas and Gandhar power projects.

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