Reliance Industries Q4 net profit up 14% to Rs5,376 crore on improved crude production and GRM
Moneylife Digital Team 21 April 2011

For the full fiscal, RIL's net profit grew 24.9% to Rs20,286 crore while its total turnover increased 29% to Rs258,621 crore

Reliance Industries Ltd (RIL) on Thursday reported a 14% rise in its standalone net profit on higher gross refining margin (GRM), which increased to $9.2 per barrel against $7.5 per barrel a year ago.
 
For the quarter to end-March, the largest petro-chemical company in India, said, its net profit increased to Rs5,376 crore from Rs4,710 crore while its total sales rose 26.2% to Rs72,674 crore from Rs57,570 crore, same period last year.
RIL said during the quarter its GRM at $9.2 per barrel is its highest quarterly GRM achieved in the last eight quarters and indicates a margin recovery of refining business globally.
 
For the year that ended on 31st March, RIL registered a 25% growth in net profit to Rs20,286 core from Rs16,236 crore as its turnover increased 29% to Rs258,651 crore from the a year ago. Increase in volume accounted for 11% growth in revenue and higher prices accounted for 18% growth in revenues, the company said in a release. The company’s exports increased 33% at Rs146,667 crore as against Rs110,176 crore in the previous year, RIL added.
 
Mukesh Ambani, chairman and managing director, RIL, said, “Reliance had a record year with strong financial and operating performance. Global economic growth, emerging markets demand and tightness in the markets led to recovery in refining margins and record petrochemical earnings. Reliance also entered into a strategic partnership with BP to exploit the full potential of its domestic upstream portfolio. Joint ventures in shale gas diversified our portfolio and are creating new competencies."
 
The petro-chemicals company said, during the year, higher quantities of oil, gas and condensate production from KG-D6 led to the growth in segment revenues. However, this revenue growth was partly offset by lower production from Panna-Mukta and Tapti fields, it added.
 
For the year ended 31st March, production from KG-D6 was 8.0 million barrels of crude oil, and 720 billion cubic feet (BCF) of natural gas, a growth of 98% and 42%, respectively as its oil and gas production was under ramp-up during the previous year. Production of gas condensate started in first quarter of FY11. During the period, production of gas condensate was at 0.8 million barrels, the release said.
 
The company declared a dividend of 80% for the year ended on 31st March.
 
On Thursday, before the results annoucement, RIL shares closed 1.4% higher at Rs1,039.95 on the Bombay Stock Exchange while the benchmark Sensex ended 0.7% up at 19,602 points.
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