The Hindu Business Line : Reliance Q3 net profit rises 27 pc on better margins

BETTER margins in petrochemicals and refining helped Reliance Industries report a 27 per cent rise in net profit for the third quarter ended December 31, 2003.

Net profit rose to Rs 1,374 crore against Rs 1,083 crore previously or earnings of Rs 9.8 per share compared to Rs 7.7 per share. Net sales jumped 14 per cent to Rs 12,500 crore (Rs 10,973 crore), while other income fell to Rs 223 crore (Rs 270 crore).

Mr Anil Ambani, RIL's Vice-Chairman and Managing Director, told presspersons that although diesel demand was negative over the past two quarters, the overall demand for petroleum products is expected to be 4-5 per cent higher by the end of this financial year.

Mr Ambani expected the global demand for petrochemicals to continue rising and prices to peak in mid-2005. Increased demand means higher margins for Reliance has a 72 per cent share of the country's polymers market and 71 per cent of the fibre intermediates market. It also has a 51 per cent share of the polyester market.

In the third quarter, RIL's total expenses rose to Rs 9,912 crore (Rs 8,831 crore), interest payments fell to Rs 386 crore (Rs 401 crore) and deprecation increased to Rs 801 crore (Rs 657 crore).

RIL, which has permission to set up close to 5,800 outlets to retail transport fuels, will ensure that 300 retail outlets are "up and running" over the next six months. This number will double in "under a year," Mr Ambani said.

RIL is in talks for buying the troubled Dabhol power project and is interested in an asset sale for acquiring the 2,184 MW plant on an "as is where is" basis.

The company hopes to have a subscriber base of 7 million to 8 million for its telecom services by the end of next quarter. It has so far invested around Rs 8,500 crore in the infocomm venture, Mr Ambani said.

For the nine-month ended December 31, 2003, Reliance Industries has reported a net profit of Rs 3,741 crore, 25 per cent higher than Rs 3,003 crore last year. The net turnover for the nine months was Rs 37,694 crore (Rs 33,142 crore).

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