Reliance Industries net up 32 percent

Mumbai, July 27 (IANS) India’s largest private sector company Reliance Industries (RIL) Tuesday reported a 32.3 percent increase in net profits at Rs.4,851 crore ($1.03 billion) for the quarter ended June, its highest ever, compared to Rs.3,666 crore in the previous fiscal.

The company’s turnover increased by 88.1 percent to Rs.61,007 crore (US$ 13.1 billion), another record, during the period under review from Rs.32,441 crore in the same quarter of 2009-10, RIL said in a statement.

The increase in volume sold accounted for 48.4 percent growth in revenue, while higher prices helped increase revenue by 39.7 percent.

The numbers were in line with most analyst expectations.

‘We had yet another record quarter due to high operating rates and improving margins across all our businesses. Reliance embarked on two major initiatives to create incremental value. We entered into joint ventures in shale gas to internationalise and diversify our upstream portfolio,’ said Mukesh D. Ambani, chairman and managing director.

‘Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless. Both these initiatives are in line with the strategy to identify and invest in new, value creating business,’ he said.

During the quarter, gross refining margin stood at $7.3 per barrel, up from $6.8 per barrel in first quarter of last fiscal, and refining revenues increased 106.81 percent to Rs.50,531 crore from the previous corresponding figure of Rs.24,434 crore.

Another major business segment, petrochemicals saw its revenue increase 18.8 percent to Rs.11,707 crore from Rs.13,903 crore, but earning margins were slightly lower at 14.8 percent.

The group’s oil and gas production business saw a revenue growth of 150.3 percent to Rs.4,665 crore, primarily due to higher proportion of oil production.

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