Reliance net profit rises by 22 pc in first half

The operating profit for the half year increased by 19 per cent to Rs 1,992 crore as against Rs 1,670 crore. Further, cash profit increased toRs 1,569 crore as against Rs 1,323 crore previously. The company has provided a sum of Rs 447 crore for depreciation against Rs 402 crore and nil for taxation.

The earnings per share for the half year is Rs 11.8 and cash earnings per share Rs 16.6. The company’s contribution to the national exchequer in the form of various taxes increased by 16 per cent to Rs 1,764 crore over the same period last year. The total exports, including deemed exports, increased by 47 per cent to Rs 421 crore against Rs 286 crore.

Commenting on the results, Ambani said "We are delighted with the encouraging performance achieved in the first half of the current financial year. Our record production volumes, the continued momentum in domestic demand growth and the improved environment for the petrochemicals industry in the Asia Pacific region have contributed to higher earnings growth."

He said that the increased volumes and enhanced degree of integration arising from the start up of the integrated Jamnagar refinery andpetrochemicals complex, together with continuing focus on efficiency, productivity and cost reduction are expected to positively impact future performance.

The company has reported a 22 per cent increase in interest expenses and an 11 per cent increase in depreciation primarily due to residual capitalisation of Hazira plants and commissioning of new facilities of Jamnagar. RIL also reported a capital expenditure of nearly Rs 1,650 crore mainly at the Jamnagar petrochemical complex. Production volumes in the polyester business increased by nine per cent to 318,000 tonnes, while production volumes of fibre intermediates grew by 17 per cent to 745,000 tonnes.

“Having just concluded an arrangement to utilise the production facilities of Raymond Synthetics, RIL intends to further participate in the restructuring of the domestic polyester industry, which will strengthen its leadership and improve the competitive structure of the industry,” it said. Reliance’s polymer business reported a 13 per cent increasein production volumes to 583,000 tonnes, during the first six months of the current fiscal, reflecting partly the impact of the recent commissioning of 400,000 tonnes per annum of PP capacity at the Jamnagar petrochemicals complex.

The domestic demand for polypropylene and polyethylene witnessed strong growth rates of 24 per cent, despite the increase in polymer prices and the demand for PVC remained stagnant due to low off-take by government bodies and an extended monsoon. Oil from Panna Mukta oil fields recorded a 25 per cent growth from 133,000 tonnes to 167,000 tonnes, while gas production increased by 33 per cent from 5.7 to 7.6 million cubic metres per day.

The company’s petrochemicals complex at Jamnagar, comprising the new paraxylene and polypropylene facilities, is slated for completion ahead of schedule during the current financial year. The completion of the Jamnagar complex during the current financial year will lead to a increase in total production capacity to over nine million tonnes perannum.

RIL is planning to set up a separate company for its 500 mw power project coming up at Jamnagar. The project, which has received the clearance of Central Electricity Authority, will be named as Reliance Jamnagar Power Ltd.