RIL net climbs up at Rs 9,398 cr; scrip flares up to 4-digit

Mumbai, Apr 27 (UNI) Reliance Industries (RIL) today reported a 23 per cent increase in its consolidated net profit at Rs 9,398 crore for the year ended March 31, 2006 when compared with Rs 7,628 crore for the previous fiscal.

The company's turnover is up 22 per cent to Rs 89,214 crore for FY-06.

Its board has recommended a cent per cent dividend at Rs 10 per equity share of Rs 10 each, a RIL release said.

Significantly, Reliance share rose more than three per cent to a new high of Rs 1,013 on the Bombay Stock Exchange (BSE), as fund managers made heavy purchases ahead of its Q4 results.

However, the scrip, which carries the most weight on the BSE, traded at Rs 1,003.90 in the late afternoon trading and closed at Rs 997.95.

On the results, RIL Chairman and Managing Director Mukesh Ambani said it was a ''very good year'' in an ''extremely challenging environment'' as the company took several strategic steps to enhance and distribute wealth to the shareholders.

''What is even more gratifying is the growth in our profits from a little over USD one billion to over USD two billion in a span of just 24 months,'' Mr Ambani observed.

The group has started investing in each of its businesses to achieve substantial growth in earnings in the future and create further value for millions of shareholders, he added.

RIL's nine per cent annual rise in quarterly net profit has outperformed the forecasts from analysts who had expected a second consecutive quarter-on-quarter drop.

Reliance, also a leading maker of polyester fibre, yarn and paraxylene, said its net rose to Rs 2,502 crore in the fourth quarter (Q4) of FY-06, from Rs 2,300 crore a year ago even as analysts had forecast a net profit of Rs 2,170 crore and net sales of Rs 21,075 crore.

Meanwhile, Reliance shares rose 18 per cent in Q4, lagging slightly from the main index's 20 per cent gain.

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