Reliance Q3 net profit rises 21 pc

For the nine months ended December, the corporate giant has registered a net profit of Rs 2,106 crore (Rs 1,749 crore in the previous fiscal) and sales of Rs 21,564 crore (Rs 13,707 crore), the highest ever in the private sector. Production also increased from 6.4 million tonnes to 7.9 million tonnes, representing a 24 per cent growth.

Addressing a news conference here today, RIL managing director Anil Ambani said the operating margin remained largely stable at 20 per cent following increased volumes, higher product selling prices, partially offsetting increased feedstock costs, continued focus on efficiency, productivity and cost reduction.

The company is planning to sell 10 per cent stake in Reliance Petroleum to an investor which would fetch it around $ 1 billion,” Ambani said. “Consequently, our stake in RPL will fall to 54 per cent,” he added. “Many corporates, foreign countries and financial giants are talking to us to buy our stake… we are in discussion to get the maximum benefit for our shareholders,” he added.

The capital expenditure during the nine months under review was Rs. 400 crore while it repatriated Rs 3,401 crore (US $ 749 million) from its foreign currency monetary assets.

The company produced 5.54 lakh tonnes of ethylene and 2.64 lakh tonnes of propylene at its Hazira petrochemical complex. On oil and gas production at Panna, Mukta and Tapti fields, a joint venture with Enron and Oil and Natural Gas Corporation, oil production increased by 20 per cent from 2.56 lakh tonnes to 3,07 lakh tonnes while gas production was up two per cent at 5.17 lakh metric tonnes of oil equivalent.

RIL’s manufactured exports, including deemed exports, increased by over 200 per cent to Rs 2,292 crore in first nine months of current fiscal, as against Rs 759 crore for the corresponding period last year. During the period under review, total production volume increased 24 per cent to 7.9 million tonnes from 6.4 million tonnes in the same period the previous year.

Other income in the nine months period decreased by 52 per cent at Rs 205 crore (Rs 426 crore), primarily on account of lower interest income, arising from the reduction in foreign currency monetary assets and conversion of interest bearing optionally fully convertible debentures of RPL into equity, Ambani said.

The 32 per cent increase in interest expenses at Rs 925 crore and 44 per cent rise in depreciation at Rs 1,018 crore reflects the impact of capitalisation of the new plants at the integrated Jamnagar petrochemicals complex, he added.

Ambani said export revenues alone cover the foreign exchange denominated interest liabilities on foreign exchange debt, by more than four times. Total exports from RIL and RPL during the nine months were over Rs 7,000 crore, which ranks Reliance as the largest exporter from India, he said.

RPL net profit touches Rs 441 cr: Group firm Reliance Petroleum sales during the quarter ended Decembber 2000 weres Rs 9,149 crore while the net profit was Rs 441 crore. “RPL will announce dividend in its first year of operations,” Ambani said. For the first nine months of operations, RPL has recorded a whopping sales of 23,457 crore and a net profit of Rs 1,167 crore making it Number 2 company in the country after Reliance Industries.