Reliance Industries Q1 net up 10.25 pc to Rs 2,547 cr

Mumbai, July 20: Reliance Industries Ltd has posted a net profit of Rs 2,547.0 crore for the quarter ended June 30 as compared to Rs 2,310.0 crore for the corresponding period last year, an increase of 10.25 per cent.

Announcing the results, the company said its total income (net of excise) has increased from Rs 17,978.0 crore in Q1 FY'05-06 to Rs 24,566.0 crore for the quarter ended June 30 Q1 FY'06-07, an increase of 36.64 per cent.

A RIL release here today quoted its Chairman Mukesh Ambani saying, ''It has been an excellent quarter for RIL. All our businesses have recorded robust performance in a very challenging environment. I am very excited about RIL's future as we continue to commit our cash flows in expanding our existing and new businesses.'' Other incomes have decreased from Rs 194 crore to Rs 44 crore on account of decrease in net interest income due to utilisation of surplus funds primarily for investment in Reliance Petrochemicals Limited (RPL), the release said.

Earning per share for the quarter stood at Rs 18.3, while contribution to the national exchequer in the form of various taxes was Rs 3,323 crore.

Consumption of raw materials increased by 34 per cent from Rs 13,540 crore to Rs 18,152 crore primarily on account of higher crude prices.

Interest expenditure has increased by 12 per cent from Rs 237 crore to Rs 266 crore on account of increase in borrowings and exchange differences. The outstanding debt as on June 30 was Rs 23,428 crore as compared to Rs 21,866 crore as on March 31 this year and Rs 17,663 crore on June 30 last year.

Net gearing during the quarter was 29 per cent as compared to 25 per cent on March 31 this year and interest cover during this quarter was 8.1 as compared to 7.7 of last quarter on March 31.

RIL has a highest credit rating of AAA from Crisil and investment grade rating of Baa2 and BBB from Moody's and S&P respectively. RIL's international rating from both Moody's and S&P is above the sovereign rating of India, the release pointed out.

During the quarter, RIL acquired 90 crore equity shares of RPL at Rs 60 per share. Consequent to RPL's 20 per cent share issue to public and five per cent stake sale to Chevron by the company, RIL now holds 75 per cent equity stake in RPL at an investment of Rs 6,750 crore.

UNI