Reliance Q3 net profit jumps by over 50%

22-Jan-05

Reliance Industries Q3 performance has exceeded market forecasts: net profit has jumped 52%, to Rs. 20.9 billion (US$ 481 million). The corporate gaint, which accounts for 3.5% of India's GDP, became India's first private sector company in the last fiscal year to cross the billion dollar profit mark. Exports during the 3 months to December rose 51% to 162 billion rupees. Production of oil, gas and petrochemicals rose 2% to 9.4 million tons over the 9 months to December. Higher vehicle sales in India and China have bolstered Asian fuel prices and have helped keep refining margins high. Domestic demand for polymers was more or less flat in Q2 FY05. However, the price cuts announced in late Q3 helped the petrochemicals division grow its segment revenue 31.1%. Higher naphtha prices have also been reflected in total raw material cost jumping 55.7% to Rs. 12, 687crore in the last quarter. Naphtha prices have cooled about 11% over the last 6 weeks and should help improve the profitability of the petrochemical division.