Date:28/04/2005 URL: http://www.thehindu.com/2005/04/28/stories/2005042805751600.htm

Business

Reliance net profit zooms 47 p.c. to Rs. 7,572 crs.

Special Correspondent

Oil and gas output increases to 12.7 million tonnes

ODD MAN OUT: The Vice-Chairman of Reliance Industries, Anil Ambani, speaks to the media outside the company's corporate office prior to the annual board meeting in Mumbai on Wednesday. — Photo: Paul Noronha

MUMBAI: Reliance Industries Ltd (RIL) has reported a 47 per cent increase in net profit at Rs. 7,572 crores for the year ended March 31, 2005 against Rs. 5,160 crores in 2003-04. The gross turnover increased by 30 per cent to Rs. 73,164 crores from Rs. 56,247 crores.

The board has recommended a dividend of 75 per cent (Rs. 7.50 per share of Rs. 10 each).

The company on a stand-alone basis has posted a 62 per cent increase in net profit at Rs. 2,292 crores for the fourth quarter ended March 31, 2005 against Rs. 1,419 crores in the corresponding period of the previous year. Total income increased to Rs. 18,315 crores from Rs. 14,585 crores.

Exports, including deemed exports, were Rs. 25,532 crores during the year against Rs. 14,969 crores, an increase of 71 per cent. The production of oil and gas and petrochemicals, including toll conversion, increased to 12.7 million tonnes from 12.4 million tonnes, a rise of 3 per cent.

The operating profit, before other income, was Rs. 12,811 crores against Rs. 9,984 crores, an increase of 28 per cent.

The net operating margin remained stable at 19.4 per cent despite volatile raw material prices, offset by higher selling prices and increased productivity.

Other income was Rs. 1,450 crores, mainly representing interest income and income from preference shares. Interest expenditure increased 2 per cent to Rs. 1,469 crores due to the impact of foreign exchange fluctuations.

Depreciation was Rs. 3,724 crores (Rs. 3,247 crores). The higher charge was on account of normal capital expenditure and additions for marketing infrastructure.

Anil Ambani on IPCL

On a reported decision of the IPCL board, from which he had resigned on January 3, at its meeting on Tuesday that Mr. Anil Ambani should reconsider his decision, Mr. Anil Ambani on Wednesday told media persons before the board meeting that "As of now I have no communication on my offer to resign from the IPCL board.

"I do not know what IPCL board is doing. I do not know whether they have communicated to the stock exchanges."

IPCL informed the stock exchanges after the January 20 board meeting that it had decided to ask Mr. Anil Ambani to reconsider the decision but in a subsequent communication last week said that he ceased to be a director on the board of the company.