Reliance Industries announced a 27 per cent rise in its net profit for the quarter ended December 2003, helped by higher sales, rising petrochemical prices, lower interest costs and improved refining margins. | |
| Net profit jumped from Rs 1,083 crore in the quarter ended December 2002 to Rs 1,374 crore in the December 2003 quarter, while net sales increased 13.9 per cent from Rs 10,973 crore to Rs 12,500 crore. |
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| Speaking at a media conference in Mumbai today, Vice-Chairman and Managing Director of Reliance Industries Anil Ambani said, "Operating profit margins improved to 13.6 per cent and efforts on improving operational efficiency and focus on value-added speciality products have helped improve the bottom line." |
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| Interest costs were pruned to Rs 386 crore from Rs 401 crore in the previous corresponding quarter. Other income dropped from Rs 270 crore to Rs 223 crore after the discontinuation of some dividend income. |
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| Ambani said Reliance would be generating about Rs 30,000 crore of free cash flows in the next three years. |
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| "We are looking at investment opportunities in oil exploration, oil retailing, power, infocomm, and petrochemicals," he said. |
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| "With the petrochemicals industry facing an upturn, our future cash flow has a significant upside potential," Ambani added. Reliance shares were up 0.5 per cent to Rs 581.40 after the results. |
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| Reliance's exports jumped sharply in April-December 3003 to top Rs 10,755 crore, up 35 per cent. |
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| "During the third quarter exports rose 28 per cent, despite the 5 per cent appreciation of the rupee vis-a-vis the US dollar," Ambani said. |
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| Commenting on the performance of subsidiary Reliance Infocomm, Ambani said: "We are well on course to report profits by March 2004." |
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| Our subscriber base is already 6.6 million and should increase to between 7-8 million by the fiscal end." Reliance Industries has put Rs 8,500 crore into the infocomm business till date. |
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