The Hindu Business Line : Reliance Ind net leaps 52 pc in third quarter on higher margins

RELIANCE Industries Ltd (RIL) has posted a 52 per cent rise in its third quarter net profit, over the year-ago period, riding on higher petrochemicals margins and fuel sales.

The country's largest private sector company had a net profit of Rs 2,091 crore or Rs 15 per share for the third quarter ended December 31, 2004, compared with Rs 1,374 crore or Rs 9.8 per share, in the corresponding period last year.

Net turnover for the period was 42 per cent higher at Rs 17,768 crore against Rs 12,500 crore in the previous third quarter. The growth was fuelled by higher income from the petrochemicals and refining businesses.

Export earnings including deemed exports registered a 51 per cent growth at Rs 16,205 crore in the period from Rs 10,755 crore.

RIL has benefited from the rising Asian and Indian demand for polymers and polyester products over the last year. Margins have been swelling with rising polymer prices, said a senior analyst.

In the fuels market, India has recorded a demand of 3.7 per cent in the last three quarters compared to a flat growth in the previous year.

RIL has increased the capacity of its Jamnagar refinery to process 32 million tonnes a year, up from 27 million tonnes. The company said it has processed 23.69 million tonnes of crude in the last nine months.

RIL's total expenses last quarter amounted to Rs 14,478 crore (Rs 9,934 crore); this included a substantial increase in raw material and staff costs. It spent Rs 205 crore on interest, lower than Rs 364 crore last year, while depreciation was Rs 912 crore (Rs 801 crore). Tax provision has gone up to Rs 413 crore against Rs 250 crore.

According to analysts, the performance was exceptional and the only issue that needs to be resolved to boost investor confidence is the ownership dispute between the Ambani brothers.

For the nine months ended December 31, 2004, RIL reported a net profit of Rs 5,280 crore (Rs 3,741 crore), which is more than its last full year's profit of Rs 5,160 crore. Net sales for the nine-month period stood at Rs 48,212 crore (Rs 37,694 crore).

The company has till date spent Rs 139.46 crore for its buyback programme that commenced on January 10, at an average price of Rs 522 per share.

RIL shares ended on Thursday at Rs 511.20. Markets remained closed on Friday.

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