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H1 results: Reliance sales up 16 pc, net up 10 pc; higher volumes, backward integration help it to break corporate records

Reliance Industries Limited has announced its unaudited results for the half-year ended September 30, 1998, establishing several new corporate records.

Sales and net profit recorded for the half-year are the highest in the private sector so far.

Sales for the half year were Rs 73.74 billion against Rs 63.30 billion for the corresponding period, an increase of 16 per cent. Operating profit increased by 21 per cent to Rs 16.70 billion as against Rs 13.83 billion for the corresponding period.

The company's cash profit increased to Rs 13.23 billion against Rs 11.45 billion for the corresponding period, an increase of 16 per cent; and net profit was Rs 9.21 billion as against Rs 8.40 billion for the corrresponding period, an increase of 10 per cent.

Commenting on the results, Anil D Ambani, managing director, RIL, said, ''We are encouraged by Reliance's consistent financial performance, in the face of the severe competitive pressures arising from what has practically become a global economic crisis.''

RIL's total paid-up equity share capital has been unchanged at Rs 9.32 billion. Earnings per share for the half year are Rs 9.8 and cash earnings per share for the half year are Rs 14.1. Annualised earnings per share are Rs 19.6 and cash earnings per share are Rs 28.2.

"The key drivers to Reliance's performance have been the strong volume growth, and the benefits accruing from the higher degree of vertical backward integration, leading to increased value addition. The improvement in operating margins was a reflection of Reliance's overall superior competitive strengths," Ambani said.

With Reliance's expansion plans at the Jamnagar petrochemicals complex on schedule, the company's overall production capacity will rise to over nine million tonnes per annum, and will be the engine of future growth and performance, he added.

The company's contribution to the national exchequer in the form of various taxes increased by 16 per cent to Rs 15.19 billion over the corresponding period. The company's production increased from 2.35 million tonnes to 3.45 million tonnes, representing a 47 per cent growth.

Total exports including deemed exports increased by more than 230 per cent to Rs 2.86 billion as against Rs 860 million for the corresponding period.

The company's operations have helped the nation save precious foreign exchange to the tune of Rs 47.20 billion, an increase of eight per cent over the corresponding period, the release claimed.

UNI