Reliance scores another first

Mumbai, 20 October 1999: Reliance Industries Limited is the first private sector company to declare net profit of over Rs 1,100 crore in six months, establishing a new corporate record. Reliance has announced its unaudited results for the half year ended 30 September 1999, establishing several new records of sales of Rs. 8,673 crore ($1,989 million) and net profit of Rs.1,122 crore ($257 million) - the highest in the private sector.

• Sales for the half year ended 30 September 1999 were Rs. 8,673 crore ($1,989 million) against Rs. 7,374 crore for the corresponding period, an increase of 18 per cent.
• Operating profit (PBDIT) for the half year increased by 19 per cent to Rs 1,992 crore ($457 million) against Rs 1,670 crore for the corresponding period.
• Cash profit increased to Rs. 1,569 crore ($360 million) against Rs.1,323 crore for the corresponding period, an increase of 19 per cent.
• Net profit of Rs. 1,122 crore ($257 million) against Rs. 921 crore for the corresponding period, an increase of 22 per cent.
• The total paid up equity share capital has remained unchanged at Rs.934 crore ($214 million).
• Earnings per share for the half year is Rs. 11.8 ($0.27) and cash earnings per share for the half year is Rs. 16.6 ($0.38).
• Annualised earnings per share are Rs.23.6 ($0.54) and cash earnings per share Rs.33.2 ($0.76 ).
• The company's contribution to the national exchequer in the form of various taxes increased by 16 per cent to Rs. 1,764 crore ($405 million) over the corresponding period.
• The company's production increased from 3.45 million tonnes to 3.91 million tonnes, representing a 13 per cent growth.
• Total exports including deemed exports increased by 47 per cent to Rs 421 crore ($97 million) as against Rs 286 crore for the corresponding period.
• The company's operations have helped the nation save precious foreign exchange to the tune of Rs. 5,972 crore ($1,370 million), an increase of 27 per cent over the corresponding period.

The company has reconciled the accounts with US GAAP as well as with International Accounting Standards (IAS). Reconciliation of net profit as per Indian GAAP, US GAAP and IAS is as under:

The difference is mainly on account of deferred taxation and investments of subsidiaries, which are marked to market under US GAAP.

It may, however, be noted that as about 95 per cent of the revenue of the company is earned in India the true and fair picture is indicated as per Indian GAAP.

Commenting on the results, Mr Anil D. Ambani, managing director, Reliance Industries, said:

"We are delighted with the encouraging performance achieved in the first half of the current financial year. Our record production volumes, the continued momentum in domestic demand growth, and the improved environment for the petrochemicals industry in the Asia Pacific region, have contributed to higher earnings growth. The increased volumes and enhanced degree of integration, arising from the start up of the integrated Jamnagar refinery and petrochemicals complex, together with our continuing focus on efficiency, productivity and cost reduction, are expected to positively impact future performance."