RIL posts 9% increase in profits for the fiscal

29-Apr-06

Reliance Industries (RIL) has posted a 9% increase in net profit, primarily on the strength of record refining margins. In the fourth quarter, refining margins for RIL were its highest ever level at $10.3 a barrel, compared to $9.1 a barrel in October-December '05. The company had suffered a 6% drop in its October-December net profit with the shut down of its 33m tonne refinery for about 50 days. Oil refining now brings in about 56% of Reliance's revenue, with petrochemicals and oil production bringing in the rest. Net profit for the quarter ended March 31, '06 grew to Rs 2,831 crore compared to Rs 2,348 crore in the same period last year. These profits grew on a 33% higher turnover of Rs 26,356 crore for the quarter compared to Rs 18,386 crore in the quarter ended March 31, '05. The full year results showed similar growth with net profit growing to Rs 9,398 crore for the year ended '05-06 compared with Rs 7,628 for '04-05. Interest expenditure for the company during the year fell sharply by 40% from Rs 1,469 crore to Rs 877 crore mainly because of lower interest rates and higher interest capitalisation.