RIL posts Q4 results

Mukesh Ambani-led Reliance Industries Limited (RIL), India’s largest private sector company, has revealed its fourth quarter (Q4) results reporting a 1% fall in net profit and 25% declination in total revenues.

Posting the Q4 results to Indian bourses, RIL revealed a 1% dip in net profit excluding exceptional item to Rs.

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3,874 YoY for the fiscal year (FY08-09) while it was Rs.3,912 for same corresponding quarter last year. In the third quarter, it was Rs.3,501-crore; so on Quarter-on-Quarter (QoQ) basis it gained a net profit of 10.65%.

The moderation in growth is due to highly volatility in crude oil prices and contraction in demands in both the domestic and global markets, as market analysts believe. In one fiscal year, the international prices of crude oil once reached to USD 147 per barrel in July 2008, while in February it plunged to below $38 per barrel.

The net profit excluding exception items rose to 2.3% to Rs.15,607-crore in the FY09 as against FY08, which was Rs.15,261-crore.

The total revenue in Q4 of FY 09 dipped to 24.9% YoY to Rs.29,073-crore compared to last year’s Q4 result of Rs.32,535-crore. While on the whole, it grew to Rs.1,50,771-crore from Rs.1,39,269-crore registering a growth of 8.3%.

The Cash Profit before exceptional items increased by 2.7% to Rs. 21,566 crore while the net profit before exceptional items increased by 2.3% to Rs. 15,607 crore, informed RIL in the press release.

The annual export increased by 12.6% to Rs. 94,038 crore while Earning per Share (EPS) fell to Rs.103.2 this year from Rs.105 last year.

But, this year, the participation of KG basin and commissioning of the new refineries have added new feathers in the crown of Reliance which cumulative effect would come in future.

“This was a transformational year for Reliance. We commissioned our large refinery and substantially completed gas development projects. Our operating performance with earnings growth is creditable in a year of extraordinary challenges of price volatility and demand reduction,” said Mukesh Ambani, the Chairman and Managing Director (CMD), Reliance while commenting on results.

In this new fiscal, Reliance can achieve a robust growth if the merger of Reliance Petroleum Limited into RIL gets successful. After merger, the production and the marketing of petroleum will further boost output of the company.