RIL H1 net profit at Rs 1,920 crore; highest in private sector

Mumbai: Reliance Industries (RIL) has announced its unaudited results for the half-year ended 30 September 2002. RIL has clocked a gross turnover of Rs 31,782 crore ($6,569 million) and a net profit of Rs 1,920 crore ($397 million) — the highest in the private sector.

During the half year, the amalgamation of Reliance Petroleum (RPL) with RIL has been completed, creating the only company in the world with fully-integrated world-scale operations in oil and gas exploration and production (E&P), refining and marketing (R&M), petrochemicals, power and textiles. The merged entity, RIL, enjoys global ranking in all major businesses and leading domestic market shares (See ‘’).

During the half year, the company has also completed the acquisition of IPCL, India’s second largest petrochemicals company, and the country’s 19th largest company in terms of overall sales.

These mergers and acquisitions are in line with global trends of consolidation, to enhance size, scale, integration, global competitiveness and financial flexibility, and will contribute to the achievement of RIL’s objectives of attaining peer group leadership, in terms of asset base, revenue, production volume, market share, and maximisation of total shareholder returns.

Based on the latest available information, RIL is now expected to rank among the top 200 companies in terms of net profit, among the top 300 in terms of net worth, among the top 425 in terms of total assets, and among the top 500 in terms of sales, in the Fortune Global 500 rankings.

RIL’s performance highlights for the half-year ended 30 September 2002 are:

• Gross turnover (including inter-divisional sales and excise duty) of Rs 31,782 crore ($6,569 million) against Rs 29,987 crore for the corresponding previous half-year — an increase of 6 per cent
• Turnover (net of inter-divisional sales) of Rs 24,100 crore ($4,981 million) against Rs 23,442 crore for the corresponding previous half-year — an increase of 3 per cent
• Operating profit (PBDIT) increased by 3 per cent to Rs 4,610 crore ($953 million) as against Rs 4,489 crore for the corresponding previous half-year
• Cash profit increased to Rs 3,649 crore ($754 million) against Rs 3,378 crore for the corresponding previous half-year — an increase of 8 per cent
• Net profit of Rs 1,920 crore ($397 million) against Rs 1,536 crore for the corresponding previous half-year — an increase of 25 per cent
• The total paid-up equity share capital (including shares allotted to erstwhile RPL shareholders on 23 October 2002) stood at Rs 1,396 crore ($289 million)
• Earnings per share (EPS) for the half-year are Rs 13.7 ($0.28) and cash earnings per share (CEPS) for the half-year are Rs 26.1 ($0.54)
• Annualised EPS are Rs 27.4 ($0.57) and CEPS are Rs 52.2 ($1.08)
• The company’s contribution to the national exchequer in the form of various taxes were Rs 6,485 crore ($1,340 million) against Rs 5,376 crore for the corresponding previous half-year
• The company’s production of oil and gas and petrochemicals, including toll conversion, increased to 6.0 million tonnes during the first half of 2002-03 against 5.74 million tonnes for the first half-year of 2001-02 — representing a growth of 4 per cent
• The company’s refinery operated at 110 per cent capacity utilisation and processed 14.94 million tonnes of crude during the half-year
• Exports including deemed exports increased 8 per cent to Rs 5,557 crore ($1,149 million) as against Rs 5,150 crore for the corresponding previous half-year
• The company’s operations have helped the nation save precious foreign exchange to the tune of Rs 11,601 crore ($2,398 million)
• Net profit after consolidating the subsidiary companies is Rs 1,917 crore ($396 million).

Says RIL chairman and managing director Mukesh D Ambani: “We are delighted that Reliance Industries has become the first Indian private sector company to record a net profit of over Rs 1,000 crore in one quarter. This unique achievement is a tribute to the great vision, inspiration and dedication of our founder, Shri Dhirubhai Ambani.”

Says RIL vice-chairman and managing director Anil D Ambani: “We are happy with Reliance’s strong financial performance, in a period marked by a slowdown in global and domestic demand, and continued firmness in our major feedstock costs. Reliance’s consistent financial performance in this challenging industry environment once again demonstrates the strength of our market leadership, and the global competitiveness of our operations.

“During the first half, we have completed the acquisition of IPCL, and the merger of RPL with RIL. These are significant milestones, which will provide increased benefits of scale, integration, and financial flexibility, thereby contributing to our future growth, and to enhancement of overall shareholder value.”

For the nine months ending 31 December 2002, RIL expects to announce its results in the last week of January 2003.