News: RIL - Mukesh's mission accomplished
(TNN 28/04/2006) Mumbai - Beating expectations on the street, India’s largest private sector company, Reliance Industries (RIL), posted a 9% increase in net profit, primarily on the strength of record refining margins. Net profit for the quarter ended March 31, ’06 grew to Rs 2,831 crore compared to Rs 2,348 crore in the same period last year. These profits grew on a 33% higher turnover of Rs 26,356 crore for the quarter compared to Rs 18,386 crore in the quarter ended March 31, ’05.
The full year results showed similar growth with net profit growing to Rs 9,398 crore for the year ended ‘05-06 compared with Rs 7,628 for ‘04-05. Interest expenditure for the company during the year fell sharply by 40% from Rs 1,469 crore to Rs 877 crore mainly because of lower interest rates and higher interest capitalisation.
Interest capitalised during the year was Rs 637 crore compared to Rs 294 crore in the last fiscal. Meanwhile, employee cost increased 16% from Rs 846 crore to Rs 978 crore, mainly on account of higher salaries. Other income fell from Rs 1,450 crore to Rs 683 crore because of non-receipt of dividends on preference shares of Reliance Infocomm. These shares have been demerged as part of the scheme.
In the fourth quarter, refining margins for RIL were its highest ever level at $10.3 a barrel, compared to $9.1 a barrel in October-December ’05 quarter. After the results, shares in Reliance scaled a new high of Rs 1,013. The share finally closed shy of the Rs 1,000 mark at Rs 996.5, up almost 2% from Wednesday’s closing price.
Analysts said they had estimated Reliance’s refining margins would be $7.5 to $8 a barrel in the quarter. The company had suffered a 6% drop in its October-December net profit with the shut down of its 33m tonne refinery for about 50 days. Oil refining now brings in about 56% of Reliance’s revenue, with petrochemicals and oil production bringing in the rest. The company’s retailing operations have grown to 1,218 petrol pumps during the year.The RIL board has declared a 100% dividend, resulting in a payout of Rs 1,394 crore.
The full year results showed similar growth with net profit growing to Rs 9,398 crore for the year ended ‘05-06 compared with Rs 7,628 for ‘04-05. Interest expenditure for the company during the year fell sharply by 40% from Rs 1,469 crore to Rs 877 crore mainly because of lower interest rates and higher interest capitalisation.
Interest capitalised during the year was Rs 637 crore compared to Rs 294 crore in the last fiscal. Meanwhile, employee cost increased 16% from Rs 846 crore to Rs 978 crore, mainly on account of higher salaries. Other income fell from Rs 1,450 crore to Rs 683 crore because of non-receipt of dividends on preference shares of Reliance Infocomm. These shares have been demerged as part of the scheme.
In the fourth quarter, refining margins for RIL were its highest ever level at $10.3 a barrel, compared to $9.1 a barrel in October-December ’05 quarter. After the results, shares in Reliance scaled a new high of Rs 1,013. The share finally closed shy of the Rs 1,000 mark at Rs 996.5, up almost 2% from Wednesday’s closing price.
Analysts said they had estimated Reliance’s refining margins would be $7.5 to $8 a barrel in the quarter. The company had suffered a 6% drop in its October-December net profit with the shut down of its 33m tonne refinery for about 50 days. Oil refining now brings in about 56% of Reliance’s revenue, with petrochemicals and oil production bringing in the rest. The company’s retailing operations have grown to 1,218 petrol pumps during the year.The RIL board has declared a 100% dividend, resulting in a payout of Rs 1,394 crore.
posted by InCar Group Press Room at 11:33
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