RIL posts Rs. 1,320 cr. net in H1

By Our Staff Correspondent

MUMBAI, OCT. 31. Reliance Industries has announced a net profit of Rs. 1,320 crores for the half year ended September 30, 2001 against Rs. 1,203 crores in the corresponding period last year. Sales were marginally lower at Rs. 12,624 crores against Rs. 12,856 crores. Other income amounted to Rs. 295 crores (Rs. 154 crores).

The company has provided Rs. 512 crores (Rs. 631 crores) for interest charges, Rs. 818 crores (Rs. 747 crores) for depreciation, Rs. 64 crores (Rs. 62 crores) for current tax and Rs. 2 crores (nil) for deferred tax.

The company's production including toll conversion was 5.74 million tonnes (5.26 million tonnes). Manufactured exports, including deemed exports, were Rs. 1,569 crores (Rs. 1,684 crores).

The operating margin for the half year was stable at 19 per cent as a result of lower raw material prices, greater focus on specialty products, continued focus on costs, productivity and efficiency, higher degree of integration and value addition, rationalisation of duties and rupee depreciation partially offset by lower prices and marginally lower sales volumes.

Capex during the half year was nearly Rs. 390 crores on account of oil and gas and normal capital expenditure.

During the first half of 2001-02, RIL's production of polyester staple fibre (PSF), polyester filament yarn (PFY) and PET increased by 16 per cent to 4.12 lakh tonnes. The volumes were higher than those of the industry. The demand for PSF, PFY and PET was three per cent higher during the period at 6.59 lakh tonnes, reflecting seasonal factors and impact of global slowdown.

On other businesses of the Reliance group, Mr. Anil Ambani, managing director, said in Reliance's cellular business, the company's subscriber base had gone up by 54 per cent and has crossed three lakh subscribers in 118 cities in 15 States. Reliance also won the Kolkata circle for the GSM licence for Rs. 78 crores.

For the second quarter ended September 30, 2001, RIL's net profit was Rs. 702 crores against Rs. 660 crores in the corresponding period of the previous year. Sales were lower at Rs. 6,234 crores against Rs. 6,721 crores while other income was higher at Rs. 168 crores (Rs. 76 crores).

Commenting on the results, Mr. Ambani said, ``We are encouraged by Reliance's strong operational and financial performance in the continuing adverse environment for the global and domestic petrochemicals industry. Our emphasis on maintaining the highest operating rates for our plants, increased focus on specialties, continuing productivity gains, enhanced competitiveness arising from higher integration levels and reduction in financial costs have contributed to the consistent growth in our profits."

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