RIL reports Q4 net profit of Rs5,613 crore

Reliance Industries (RIL) has reported a net profit of Rs5,631 crore for the quarter-ended 31 March 2014, a marginal 0.8 per cent increase compared to the net profit of Rs5,589 crore during the January-March quarter of the previous financial year.

RIL's turnover during the quarter rose 12.9 per cent to Rs97,807 crore against Rs86,618 crore during the corresponding quarter of the previous financial year.

Total income of the Reliance Group flagship increased by 12.48 per cent to Rs97,229 crore during the quarter ended 31 March 2014, from Rs86,441 crore in the quarter ended 31 March 2013.

Profits for the quarter would have been even higher if margins remained at the higher levels.

During January-March 2014, RIL reported higher refining margins of $9.3 per barrel, although gross refining margin (GRM) in the previous year quarter was higher at $10.1 per barrel.

RIL achieved a turnover of Rs401,302 crore ($67.0 billion) for the year ended 31 March 2014, an increase of 8.1 per cent, compared to Rs371,119 crore in the previous year.

Higher prices accounted for 7.7 per cent growth in revenue while increase in volumes accounted for 0.4 per cent growth in revenue, the company said in a release.

Exports were higher by 15.3 per cent at Rs275,825 crore ($46.0 billion) as against Rs239,226 crore in FY 2012-13.

Higher crude oil prices resulted in 7.6 per cent increase in cost of raw materials to Rs329,313 crore ($ 55.0 billion) from Rs306,127 crore on Y-o-Y basis.

Revenues and raw material expenses were impacted by 10.4 per cent depreciation of Indian rupee vis-a-vis the dollar.

Employee costs were at Rs3,370 crore ($562 million) against Rs3,354 crore in the previous year.

Other expenditure increased by 12.2 per cent to Rs25,621 crore ($4.3 billion) from Rs22,844 crore, primarily due to higher expenses on account of power and fuel consumption.

Operating profit before other income and depreciation increased by 0.3 per cent to Rs30,877 crore ($5.2 billion) from Rs30,787 crore due to higher contribution from the petrochemical and refinery business, which was partly offset by lower contribution from the upstream oil and gas business.

Other income was higher at Rs8,936 crore ($1.5 billion) against Rs7,998 crore in the previous year, mainly on account of higher liquid investments.

''FY 2013-14 was a satisfying year for RIL. Refining business delivered the highest ever profits with a sharp recovery in GRMs towards the end of the year. Petrochemical earnings grew sharply with margin expansion across polymers and downstream polyester products. While we continue to face technical challenges in growing domestic upstream production, the US shale gas business grew significantly during the year and has become a material contributor to our earnings,'' Mukesh D Ambani, chairman and managing director of Reliance Industries Limited, said.

Ambani said RIL's retail business has turned around and has grown to become India's largest retail chain.

Reliance Retail achieved record performance in sales and profits for the year as total revenues grew 34 per cent to Rs14,496 crore and achieved profit before depreciation, interest and taxes (PBDIT) of Rs363 crore for the year.

The company added 225 stores and 2.7 million square feet of retail space during the year across sectors.

As of 31 March 2014, Reliance Retail operated 1,691 stores across 146 cities, with 11.7 million square feet retail space.

''We have also accelerated efforts to roll-out our state-of-the-art 4G services across the country which will add an exciting new dimension to our consumer facing service offerings,'' he added.

Depreciation (including depletion and amortization) was lower by 7.1 per cent at Rs8,789 crore ($1.5 billion) compared to Rs9,465 crore in the previous year. This was primarily due to lower production of oil and gas in the upstream business.

Interest cost was higher at Rs3,206 crore ($535 million) against Rs3,036 crore in the previous year, mainly on account of depreciation of the Indian rupee. This resulted in gross interest cost being higher at Rs3,907 crore ($652 million) against Rs3,421 crore in FY 2012-13. Interest capitalised was higher at Rs701 crore ($117 million) against Rs385 crore during the previous financial year.

Profit after tax for the year was higher by 4.7 per cent at Rs21,984 crore ($3.7 billion) as against Rs21,003 crore in the previous year.

Basic earnings per share (EPS) for the year ended 31  March 2014 was Rs68.0 against Rs64.8 in the previous year.

RIL had outstanding debt Rs89,968 crore ($15 billion) as of 31 March 2014 compared to Rs72,427 crore as of 31  March 2013.

Cash and cash equivalents, which include  bank deposits, mutual funds, CDs and government securities / bonds, were at Rs88,190 crore ($14.7 billion).

The net addition to fixed assets for the year ended 31 March 2014 was Rs35,210 crore ($5.9 billion), including exchange rate difference capitalisation.

Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira.

RIL's board of directors has recommended a dividend of Rs9.50 per fully paid-up equity share of Rs10 each, subject to shareholder approval at the company's AGM scheduled to be held on 5 June 2014.