Reliance Industries reported a four per cent growth in its turnover for the quarter ended March 31, 2007, at Rs 27,399 crore, over Rs 26,448 crore in the corresponding quarter of 2006. The net profit for the fourth quarter of 2006-07, at Rs 2,853 crore, climbed 14 per cent from Rs 2,502 crore in the year-ago period.
The company reported a 29 per cent increase in its turnover for 2006-07 at Rs 105,363 crore from Rs 81,211 crore in 2005-06. The net profit of the company has grown 20 per cent over the year from Rs 9,069 crore in 2005-06 to Rs 10,908 crore in 2006-07.
The fourth-quarter turnover of Rs 27,399 crore is marginally higher than the Rs 26,488 crore recorded for the quarter ended December 31, 2006.
"While our petrochemicals and refining businesses recorded its best performance, we have made substantial investments in our future growth engines, such as exploration and production and the retail businesses," Reliance Industries Chairman Mukesh Ambani said in a statement.
The results show that in the quarter ended March 31, 2007, the petrochemicals segment had contributed Rs 1,137 crore to profits and refining had contributed Rs 2,277 crore. While refining has contributed Rs 21,069 crore to revenue in the quarter, petrochemicals contributed Rs 10,670 crore.
The other categories together have contributed Rs 322 crore. The company's share price on the National Stock Exchange closed at Rs 1,596.85, marginally lower than its previous close of Rs 1,598.40.
VK Sharma, research head at Anagram Stockbroking, said, "These results are better than market expectations. The general expectation was of net profits of around Rs 2,785 crore. The gross refining margin at $13 is also best in the world. These are good signs."
The company has improved its refining margin from $10.3 last year to $13 this year and is far ahead of other regional benchmarks like the one for Singapore at $6.8 and that for the US Gulf Coast at $4.75.
Other income for the year was lower at Rs 193 crore against Rs 683 crore in 2005-06. This is primarily because of a decrease in the interest income as surplus funds were used up in investments in Reliance Petroleum shares.
According to the company release, Reliance Industry's oil production increased by 19 per cent in 2006-07. The consumption of raw material went up by 34 per cent and employee cost went up by 22 per cent. The interest cost was up by 27 per cent at Rs 1,114 crore due to increase in borrowings. The company incurred a capital expenditure of Rs 8,935 crore in 2006-07, which is slightly lower than the Rs 9,476 crore incurred in 2005-06.
The release said that the company was working on setting up 12 more jet fuel stations at airports across the country. It also said the Jamnagar complex had been converted into an export-oriented unit from April 16, 2007. It said the company would soon roll out its chain of digital stores, which will have a customer service component branded as ResQ. It also said the Reliance Fresh loyalty programme already had 750,000 members.