RIL bucks trend, posts strong financial performance

By Our Special Correspondent

MUMBAI, APRIL 30. Reliance Industries recorded a net profit of Rs. 2,646 crores for 2000-01 against Rs. 2,403 crores, an increase of 10 per cent. The company declared a dividend of Rs. 4.25 per share as compared to Rs. 4 in the previous year.

Sales have increased to Rs. 28,008 crores from Rs. 20,301 crores, an increase of 38 per cent. The gross profit for the year rose by 17 per cent to Rs. 5,562 crores from Rs. 4,746 crores. Cash profit has increased to Rs. 4,346 crores from Rs. 3,738 crores, a 10 per cent rise.

Other income dropped by 44 per cent to Rs. 383 crores, primarily on account of lower interest income, arising from deduction in foreign currency monetary assets and conversion of erstwhile interest bearing operationally fully convertible debentures of RPL into equity.

Manufactured exports, including deemed exports, more than doubled to Rs. 2,960 crores from Rs. 1,478 crores. Total exports, including merchant exports of petroleum products, were Rs. 5,237 crores. Total exports of Reliance Industries and Reliance Petroleum crossed $2 billion (Rs. 9,370 crores).

Commenting on the results Mr. Anil D. Ambani, Managing Director, said, ``We are encouraged by Reliance's strong financial performance in the environment of a slowing global and domestic economy. Our integrated, world class assets, set up at competitive capital costs and enjoying the highest levels of operational efficiencies, have provided a critical competitive edge, enabling us to successfully counter challenges of rising feedstock costs, demand supply imbalances and weak, overall industry conditions.'' Mr. Ambani said prices of major feedstocks increased sharply during the year under review, as a result of higher crude prices during a greater part of the year. The rise in product prices lagged the increase in feedstock costs, leading to overall pressures on profitability.

``Our new initiatives in the Infocom infrastructure and service sector will accelerate our growth impetus and contribute to enhancement of overall shareholder value, while firmly establishing India's rightful position as the destination of choice for providing information technology and telecom enabled services around the globe,'' Mr. Ambani added.

Extends buyback offer period

On buyback of shares, Mr. Ambani said Reliance has consistently set forth its philosophy of viewing share buy-back as a long term measure to enhance overall shareholder value and returns, and not a mechanism to artificially support any particular price level for the company's shares or to respond to short term speculative pressures. ``Accordingly, the directors have proposed the continuation of the buy-back programme for an amount of up to Rs. 1,100 crores up to a maximum price of Rs. 303 per share,'' he added. The necessary resolution in this regard will be moved at the forthcoming AGM.

Mr. Ambani also said that the directors have proposed an increase in the FII limit to 49 per cent of the equity capital of the company.

Mr. Ambani said Reliance Telecom's cellular operations had already become cash profit. It is having presence in more than 95 cities. Reliance Infocom envisaging an outlay of Rs. 25,000 crores over the next 3-5 years and the project is proposed to be financed with 2:1 debt equity with total equity requirement of Rs. 8,000 crores. ``We are implementing worldclass broadband in 115 cities,'' he added. Reliance would be participating in fixed line, mobile national long distance, international long distance and gateways.

Keeps `options open' on DPC takeover

PTI reports:

Reliance Industries ``will keep its options open' for buying a controlling stake in troubled U.S. energy major Enron-promoted Dabhol Power Company (DPC), if the latter announces its exit from the 2,184 MW power project in Dabhol.

``Enron is our partner in exploration and production in the Mumbai High offshore oil fields of Panna, Mukta and Tapti. In case the multinational expresses something to this effect, we have to keep our options open", RIL managing director, Mr. Anil Ambani, told reporters here today.

When inquired about the company's proposed power project in Patalganga, Maharashtra, Mr. Ambani said, there had been no progress on that front and the State government was still studying the project documents submitted by the company.

RPL's maiden ividend

By Our Staff Correspondent

MUMBAI, APRIL 30. Reliance Petroleum (RPL) has, in its first year of operations ended March 31, 2001, announced a net profit of Rs. 1,464 crores and a maiden dividend of 5 per cent.

Sales for the year were Rs. 30,963 crores. Other income amounted to Rs. 220 crores. Total expenditure was Rs. 27,909 crores. The company provided Rs. 1,032 crores for interest, Rs. 661 crores for depreciation and Rs. 117 crores for tax. Appropriations include debenture redemption reserve of Rs. 130 crores, equity dividend of Rs. 238 crores and tax on dividend of Rs. 234 crores. The balance carried forward is Rs. 1,072 crores.

Exports of products were Rs. 6,410 crores placing the company as the country's largest exporter in its very first year of operations. RPL's refinery operated at 95 per cent capacity utilisation in the fourth quarter, despite the earthquake which hit Gujarat in January this year.

The marketing of controlled products is to be deregulated with effect from April 1, 2002 and RPL has already applied for marketing rights for the controlled products as it meets all the criteria specified in this regard by the government.

The company is also making investments in pipeline projects, to facilitate distribution of petroleum products across the country.

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