Businesses post record performance - RIL chairman

26 April 2007 15:32  [Source: ICIS news]

Updates earlier story

 

NEW DELHI (ICIS news)--India’s Reliance Industries Limited (RIL) said on Thursday  its operating profits rose 27% to Indian rupees (Rs)182.10bn ($4.19bn) in its financial year ending 31 March 2007, from Rs142.99bn the previous year.

 

The upturn in operating profits was led by robust growth in the refining and petrochemicals businesses.

 

RIL chairman and managing director Mukesh Ambani said: “While our petrochemicals and refining business recorded its best-ever performance, we have made substantial investments in our future growth engines such as energy and petroleum and retail businesses.”

 

The company’s net sales rose 29.73% to Rs1053.63bn, from Rs812.11bn. Total expenditure grew 30.25% to Rs871.53bn, from Rs669.12bn. Net profits rose 20% in the fiscal year to March 31 to Rs109.08bn, from Rs90.69bn.

 

However, growth was dragged down by a decline in investment-related other income, an increase in interest paid on loans and a rise in depreciation charges.

 

Other income plummeted by 71.74% to Rs1.93bn, from Rs6.83bn year on year,  primarily on account of the investment of surplus funds in subsidiary Reliance Petroleum Limited (RPL), which is setting up a refinery-cum-polypropylene complex in Jamnagar, Gujarat state.

 

The refining division saw a 31% increase in operating profits to Rs77.26bn, from Rs59.16bn. The operating margin improved to 9% from 8.3%. The division increased its sales by 21% to Rs860.09bn, from Rs710.91bn.

 

Due to adverse conditions in the domestic market, the division focused on export markets, boosting volumes by 63% to 17.7m tonnes year on year, from 10.8m tonnes. Exports accounted for 57% of aggregate refinery product volumes, increasing export income by 92% to $11.3bn.

 

RIL said it had transformed its refinery complex at Jamnagar to an export-oriented one from 16 April after receiving government approval.

 

The petrochemicals division saw its operating profits increase by 26% to Rs53.95bn, from Rs42.90bn. It also saw sales rise by 36% to Rs422.26bn, from Rs310.14bn. Total petrochemicals production increased by 16% to 14m tonnes, from 12.11m tonnes the previous year.

 

Operating margins for the petrochemicals unit declined to 12.8%, from 13.8%, due to higher feedstock prices. While polyethylenes (PE) and polypropylene (PP) recorded improved margins, polyvinyl chloride (PVC), polyester and purified terephthalic acid (PTA) witnessed pressure on margins.

 

RIL said: “The petrochemicals business benefited from higher production, from expanded capacities and strong demand.”

 

Output of polyester staple fibre, polyester filament and polyethylene terephthalate (PET) resins increased by 31% to 1.48m tones year on year.

 

                                                             

 

 

By: Naresh Minocha
+65 6780 4359

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly