RIL beats estimates; net rises 24 in Q4

Beating market estimates, Reliance Industries Ltd, India8217;s largest private sector company, has reported a 24 per cent rise in the fourth quarter net profit...

Beating market estimates, Reliance Industries Ltd, India8217;s largest private sector company, has reported a 24 per cent rise in the fourth quarter net profit aided by higher refining margins. The petrochemicals and refinery giant has posted a net profit of Rs 3,912 crore for the January-March period of 2007-08 as against Rs 3,156 crore in the same period of last year.

With the company reporting an all-round performance that exceeded the previous quarter, turnover rose to Rs 38,697 crore in Q4 from Rs 29,276 crore previously. The company is expected to report better earnings this fiscal after it begins to pump gas from its deep-sea fields of east coast. 8220;Our key investments in oil and gas development and refining are expected to commission this year. I expect them to be key drivers to deliver earnings growth in the near future,8221; RIL chairman Mukesh Ambani said.

On the performance in 2007-08, Ambani said, 8220;This was a landmark year for Reliance as we delivered record financial and operating performance in challenging and volatile market conditions.8221; The company has recommended a dividend of Rs 13 per share 130 per cent for the year. RIL shares rose marginally by 0.2 per cent at Rs 2,642.15 on the BSE ahead of the unveiling of the results.

The company8217;s net profit including exceptional income increased by 63 per cent to Rs 19,458 crore while the net profit excluding exceptional income increased by 28 per cent to Rs 15,261 crore. Turnover for the full year increased by 18 per cent to Rs 139,269 crore. Exceptional item of Rs 4,733 crore represents gains primarily arising out of transactions concerning Reliance Petroleum Limited shares.

8220;The petrochemicals business benefited from strong demand from downstream user segment, higher production and firm prices across the value chain. It was the first full year of product placement, both in the domestic as well as export markets for the new Polyester, capacities commissioned during the previous financial year,8221; RIL said.

The sharp rise in gross refining margin GRM boosted the company8217;s profits. GRM for the year was 15.0 per barrel as compared to 11.7 per barrel in the previous year. GRM for the fourth quarter was even higher at 15.5 per barrel as compared to 15.4 previously. 8220;Higher refining margins helped the company to maintain the profit growth. We were not expecting more than 20 per cent growth in net profit for the fourth quarter,8221; said BSE dealer Pawan Dharnidharka.

Reliance on track

8226;Net profit including exceptional income soars 63 to Rs 19,458 cr in 2007-08

8226;Q4 turnover rises 32 to Rs 38,697 cr

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8226;Refining margin rises to 15.0 per barrel in 2007-08 from 11.7 in 2006-07

8226;Recommends 130 dividend for 2007-08

8226;Good outlook for 2008-09 as key investments in oil 038; gas development and refining expected to be commissioned this year