Reliance turnover crosses $25 billion mark; net at Rs10,908 crore

Mumbai: Reliance Industries Ltd (RIL), the country''s most valuable company, saw its net profit cross Rs2,800 crore ($663 million) in the January-March 2007 quarter from Rs2,502 crore in the same period a year ago - a 14 per cent rise. Profit for the full financial year ended March 31 was estimated at Rs10,908 crore ($2.54 billion), up 20.3 per cent from Rs9,069-crore in the previous year.

The company''s net sales during the latest quarter rose just 4.4 per cent to Rs25,600 crore ($5.95 billion), taking net revenues in the full year to Rs105, 556 crore ($25.74 billion), up 29 per cent from Rs81,894 crore in FY''06, RIL said in a statement.

RIL, with a market cap of over $50 billion is the first private entity in India to cross the $25 billion turnover mark.

"I am pleased to report yet another year of robust performance by RIL. The year 2006-07 has also been an eventful year for the company," RIL chairman Mukesh Ambani said.

Net profit for the January-March quarter rose by 14 per cent to Rs2,853 crore against Rs2,502 crore in the year-ago period. The quarterly turnover rose 5.5 per cent to Rs25,980 crore against Rs24,629 crore in the corresponding quarter of the previous fiscal.

He attributed the performance to robust growth in petrochemicals and refining businesses.

"While our petrochemicals and refining business recorded the best-ever performance, we have made substantial investments in our future growth engines such as E&P and retail businesses".

"In the past year, we created further value for millions of our shareholders through our strategic investment in RPL and through the value-accretive merger of IPCL with RIL. I am confident that RIL shall continue to deliver sustainable value for all its stakeholders," Ambani said.

Earnings growth slowed in the latest quarter because of a drop in profit from the petrochemical business, and because a weaker dollar offset gains from higher refining margins, according to figures released by the company.

Reliance will complete the world''s largest refinery complex next year, start piping 50 million cubic meters of gas a day and extend a five-month-old retail chain that will employ one million staff when completed.

Reliance earned $13 from processing a barrel of oil into fuels in the quarter, 66 per cent more than a typical refinery in Singapore. Sales in the same months rose to Rs25,895 crore from Rs24,542 crore a year ago, the company said.

Ambani''s wealth more than doubled to $20 billion last year as investors backed his strategy. Ambani moved up 42 places to be the world''s 14th richest man in 2006, according to Forbes, even as his brother Anil saw his wealth more than tripled last year to $18.2 billion post split.