RILnet jumps 32% to Rs 4,851 cr

Reliance Industries (RIL) today reported the best-ever quarterly profit and revenue numbers with a 32.3 per cent rise in profit and massive 85 per cent jump in revenues in the quarter to June, helped by robust performance of its refining and petrochemicals businesses.

While the company saw its net profit touching Rs 4,851 crore, which is a 32.32 rise over the year-ago period, its net turnover zoomed nearly 85 per cent to Rs 58,950 crore in the reporting quarter.

The Mukesh Ambani-led corporate giant saw robust gains in its earnings from oil and gas production and exploration business, helping it achieve its highest-ever quarterly net profit and revenue figures. The company has a net profit of Rs 3,666 crore in the June 2009 quarter, RIL said in a statement.

The total income rose by a whopping 85 per cent to Rs 58,950 crore for reporting quarter from Rs 31,896 crore in the same quarter year-ago period. Excluding duties and taxes, turnover rose by 88.1 per cent to Rs 61,007 crore, from Rs 32,441 crore in year-ago period.

Commenting on the results, Reliance Chairman and Managing Director Mukesh Ambani said: "we had yet another record quarter due to high operating rates and improving margins across all our businesses."

Talking about "two major initiatives to create incremental value" undertaken during the quarter, Ambani said, "we entered into joint ventures in shale gas to globalise and diversify our upstream portfolio. Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless. Both these initiatives are in line with the strategy to identify and invest in new, value creating businesses."

RIL said its strong financial growth was supported by rise in volumes as well as prices, while its exports more than doubled to Rs 32,849 crore, from Rs 16,145 crore.

The company's total expenditure also nearly doubled in the quarter to Rs 52,371 crore, from Rs 26,681 crore. Staff cost rose to Rs 617 crore from Rs 557 crore.

RIL said its outstanding debt as on June 30 was Rs 73,422 crore ($15.8 billion), up from Rs 62,495 crore as on March 31, 2010. It had cash and cash equivalents of Rs 26,407 crore ($5.7 billion), which are in fixed deposits, certificate of deposits with banks, mutual funds and government securities/bonds. The net capex towards projects for the quarter was Rs 3,628 crore ($781 million).

Its oil and gas (exploration and production) business revenue grew 150 per cent, which was entirely on account of KG-D6 production. At the same time, refining and marketing revenue more than doubled to Rs 50,531 crore, while petrochemicals business revenue rose by nearly 19 per cent to Rs 13,903 crore.