The Hindu Business Line : Reliance Industries Q1 net rises 30 pc

RELIANCE Industries Ltd (RIL) has reported a 30 per cent increase in net profit at Rs 1,437 crore (Rs 1,104 crore) for the first quarter ended June 30, 2004.

Net sales were up 14.23 per cent at Rs 14,280 crore (Rs 12,501 crore). Earnings per share grew to Rs 10.3 (Rs 7.9).

Mr Anil Ambani, Vice-Chairman and Managing Director, RIL, cited growing demand for petrochemical products, rising crude oil prices coupled with imminent winter demand for oil and a healthy 9.5 per cent demand growth for petroleum products in the country, as the reasons for higher revenues.

"If Q1 conditions continue, we expect record performance in the coming three quarters, considering there are no signs of a slowdown in demand," Mr Ambani told reporters.

During the quarter, the company exported 47 per cent more products worth Rs 5,102 crore (Rs 3,466 crore). Other income, consisting of higher interest income and premium from preference shares, increased 85 per cent to Rs 347 crore (Rs 187 crore).

Gross refinery margins in the quarter were $7 per barrel compared to $5.2 last year.

Total expenses were up at Rs 11,475 crore (Rs 10,213 crore), interest payments were Rs 468 crore (Rs 349 crore), while depreciation was Rs 916 crore (Rs 700 crore).

The company's capital expenditure, primarily onthe oil and gas business, during the quarter was Rs 800 crore, according to a news release.

RIL will begin gas production from its Krishna Godavari basin find in 2006-07, Mr Ambani said.

"We have submitted a Rs 35,000-crore (KG basin) development plan to the Director General, Hydrocarbons," he said.

Reliance plans to build its own gas transmission network to transport gas to customers such as NTPC (12 million cubic metres per day) in Gujarat and to its own proposed 3,750-MW Dadri power plant in Uttar Pradesh.

"Considering the amount of money we are investing in developing the KG basin find, we would want to ourselves transport the gas. If someone wants to use the gas grid's spare capacity on a take-or-pay basis, they would could do so," Mr Ambani said.

He said the company's target to set up 2,500 retail outlets is on track with more than 100 outlets in place across the country and 400 retail outlets in various stages of completion.

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