Reliance Industries reports 1 percent drop in profits

Friday, 24 April 2009, 04:42 Hrs
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Mumbai:India's largest private sector company, the Mukesh Ambani-led Reliance Industries, Thursday reported a 1-percent drop in net profit for the quarter ended March 31, at 3,874 crore (38.74 billion or $774.8 million).

The turnover of the oil refining to retail major also dipped nearly 24 percent at 29,073 crore for the fourth quarter in what had been a difficult year for oil refining firms across the globe in the wake of high crude prices and low margins.

The company, nevertheless, declared a dividend of 7 per share.

"This was a transformational year for Reliance Industries. We commissioned our large refinery and substantially completed gas development projects," said Ambani, commenting on the results and past-year performance.

"We have set new global benchmarks for project execution. Our operating performance with earnings growth is creditable in a year of extraordinary challenges or price volatility and demand reduction."

The results were announced after the close of trading hours at stock markets, with the company's scrip ending at 1,762.35 on the Bombay Stock Exchange, to log a gain of 2.7 percent over its previous close.

For the year as a whole, the company reported a net profit of 15,607 crore, up 2.26 percent over the previous year. The turnover, nevertheless, increased by 8.3 percent to 150,771 crore.

This makes the company's turnover a whopping $29.7 billion.

The gross refining margins for the company also fell from $15 to $12.2 per billion barrels. The company's Jamnagar refinery, though, processed 32 million tonnes at 97 percent utilisation, as against 31.8 million in the previous year.

The year also saw the company deciding to acquire its export-oriented listed firm Reliance Petroleum, followed by an announcement that it has surrendered the status to cater to the domestic demand from April 16.

The company said its oil and gas exploration and production businesses outperformed all other segments, clocking revenues of 3,489 crore, which was up 29.1 percent over the previous fiscal.
Source: IANS
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