RIL Q4 net profit declines 9% Down For 2nd Consecutive Quarter; Sales Hit
Due To Poor Petrochem Demand TIMES NEWS NETWORK
Mumbai: Reliance Industries (RIL) on Thursday reported the second
consecutive decline in its quarterly net profit and sales. Poor demand for
petrochemical products brought down India's largest private sector company's
fiscal fourth quarter net profit by 9% to Rs 3,546 crore. Net sales tumbled
25% to Rs 29,073 crore during the period under review. The petrochem major
has made a one-time provision of Rs 370 crore towards claims from
subsidiaries, a company statement said without elaborating. However, if one
excludes the exceptional item, its profit is down by 1% to Rs 3,874 crore.
The global economic turmoil and a sharp fall in crude prices resulted in
lesser offtake of RIL fuel products, hurting its margins. Quarterly revenue
from its main refining business fell 25% to Rs 21,631 crore, while revenue
from petrochemicals declined 31% to Rs 9,724 crore.
Chairman Mukesh Ambani said, ‘‘Our operating performance with earnings
growth is creditable in a year of extraordinary challenges of price
volatility and demand reduction.'' For FY09, RIL's net profit declined 22%
to Rs 15,279 crore on sales of Rs 1.5 lakh crore. Excluding exceptional
items, its yearly profit was up 2.3% to Rs 15,607 crore. The company earns a
major chunk of its revenues from exports and for FY09, its exports rose 13%
to Rs 94,038 crore.
RIL shares were up 2.7% to Rs 1,764 before the results were declared.
RIL is expected to benefit from the commissioning of the Krishna Godavari
oil and gas production blocks.
Consumption of raw materials and purchase of traded goods increased by
11.4% from Rs 96,312 crore to Rs 1.07 lakh crore in FY09 mainly on account
of higher crude and naphtha prices during the first half of the year and
higher trading of goods. Other income rose from Rs 895 crore to Rs 2,033
crore in FY09 due to higher interest income on account of higher cash and
gain on sale of investments. The company has cash of Rs 25,000 crore.
Interest cost was higher at Rs 1,692 crore as against Rs 1,077 crore as
a result of increased borrowings during the year. Its debt as on March 31,
2009 was Rs 53,457 crore.
*Rel Petroleum posts Rs 84 crore profit *
Mumbai: Mukesh Ambani-led Reliance Petroleum on Thursday said it has
reported a net profit of Rs 84 crore and a net turnover of Rs 3,678 crore
for the quarter ended March 31, 2009. The company started commercial
production from March 15. Hence, figures for the year-ago period were not
available. The total expenditure during the quarter amounted to Rs 3,564
crore, RPL said in a filing to BSE, adding that “the total capital employed
by the company is Rs 33,982 crore.”
Last month, the boards of RIL and RPL had approved the merger of both
the entities which created one of the largest petrochemical firms of the
world. “RPL refinery has achieved startup and successful stabilization of
its operations within a short period of time. The proposed merger with RIL
would lead to a globally competitive and industry leading refining business
and create sustainable value for shareholders,” RPL chairman Mukesh Ambani
said. PTI
RIL-RPL merger would lead to a globally competitive refining business, says
Mukesh Ambani
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