The Hindu Business Line : Reliance Ind net rises 58 pc in Q3

Reliance Industries Ltd's net profit for the third quarter of the current fiscal rose 58 per cent, to Rs 2,799 crore from Rs 1,776 crore in the corresponding year-ago period.

The bottomline growth was in part due to higher profit margins in its petrochemicals and refining businesses. It is also to be viewed in the context of the lower profit base a year earlier resulting from a 40-day shut down of the company's refinery in October-November 2005.

The refining business, which accounted for 64.4 per cent of the company's turnover, reported a gross refining margin (GRM) of $11.7 per barrel, against $9.1 per barrel a year ago. This GRM was also higher than the benchmark Singapore complex margin, said a statement from RIL.

Net turnover rose 46 per cent, to Rs 26,472 crore (Rs 18,168 crore). Gross refining revenues at Rs 20,870 crore, were 37 per cent higher, while earnings before interest and taxation from this segment were 125 per cent higher at Rs 1,925 crore.

Revenues from the petrochemicals segment, at Rs 10,895 crore, were 48 per cent higher and segment EBIT, 32 per cent higher, at Rs 1,407 crore.

RIL's profit before interest, depreciation and taxation rose 51 per cent, to Rs 4,751 crore (Rs 3,156 crore). Interest and finance charges amounted to Rs 293 crore (Rs 194 crore), while depreciation amounted to Rs 1,062 crore (Rs 824 crore).

For the nine months ended December 31, 2006, Reliance's net profit, at Rs 8,055 crore, recorded a rise of 23 per cent.

Its cash profit rose by 23 per cent, to Rs 11,657 crore.

Turnover rose 33 per cent to Rs 83,487 crore. The increase in revenues reflects the impact of 17 per cent high product prices and 16 per cent higher volumes, said the company.

During this period, aggregate exports, at Rs 48,696 crore, were higher by 123 per cent.

Employee costs increased by 16 per cent, to stand at Rs 888 crore, amounting to 1 per cent of turnover. Operating profit was up by 32 per cent at Rs 13,511 crore.

Net operating margin was a little lower, at 17 per cent (18 per cent), because of higher raw material costs, chiefly that of crude oil.

A partial shut down of its refinery during the first quarter of the fiscal resulted in processed crude for the period being lower at 23.6 million tonnes (22.6 mt), said the company. Petrochemicals production for the period grew by 18 per cent, to 10.4 mt.

"Robust economic growth along with a stable operating environment promises a positive outlook for all our business," said a statement from the company.

The company's shares rose by 1.27 per cent on the BSE on Thursday, to close at Rs 1,367.

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