RIL First Quarter net jumps 32% on KG output

Reliance Industries Ltd (RIL) announced an impressive 32.32 per cent jump in net profit to Rs. 4,851 crore for the April - June quarter with net turnover leaps 85% to touch highest- ever level of Rs.58,950 crore. The company’s net turnover leaped 85 per cent to touch its highest- ever mark of Rs. 58,950 crore. RIL had made a net profit of Rs. 3,666 crore in the same quarter last year on a turnover of Rs. 31,896 crore.

RIL chairman and managing director (CMD) Mukesh Ambani, said, “ We had yet another record quarter due to high operating rates and improving margins across all our businesses.” Highlighting the two major initiatives taken by the company during the quarter, he 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, up 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 equivalent of Rs. 26,407 crore ($ 5.7 billion), which are in fixed deposits, certificate of deposits (CDs) with banks, mutual funds and government securities or bonds.

The net capex towards projects for the quarter was Rs. 3,628 crore ($ 781 million).

The higher gas and oil production at RIL’s KG basin field boosted revenue by as much as 150 per cent while refining and marketing revenue more than doubled to Rs. 50,531 crore.

Revenue from the company’s petrochemicals business rose by nearly 19 per cent to Rs. 13,903 crore.

Shares of RIL on Tuesday closed at Rs. 1,053.50 on the Bombay Stock Exchange (BSE), up 0.14 per cent from the previous close.

“ RIL sees the broadband opportunity as a new frontier of knowledge economy, in which it can take a leadership position and provide India with an opportunity to be in the forefront among the countries providing world- class 4G network and services,” said a company statement.

RIL had made a dramatic entry into the telecom sector last month with the acquisition of 95 per cent stake in Infotel Broadband Services Pvt Ltd for Rs. 4,800 crore.

The takeover came as soon as Infotel emerged as the winner of the pan- India BWA spectrum auction with a bid of Rs. 12,872 crore, which was essentially bank- rolled by RIL. At the same time, RIL had also said that no other private operator had enough spectrum assets to match its capacity.

RIL’s Infotel acquisition had come days after it announced the scrapping of the non- compete agreement with the Anil Ambani group in most businesses.

In May 2010, Anil Ambani group’s RCom had paid Rs. 8,585.04 crore for 3G spectrum in 13 circles, including Delhi and Mumbai.