New Delhi, April 17: Reliance Industries on Friday reported an 8.5-percent jump in its net profit for the fourth quarter of fincial year 2014-15 at Rs.6,381 (over $1 billion), thanks to a jump in refining margins to $10.1 per barrel, which beat market expectations. The company’s board, led by chairman Mukesh Ambani, also proposed a 100 percent dividend. “Fincial year 2014-15 has been a very successful and important year for Reliance. In a time when the collapse of crude oil prices unsettled the hydrocarbon markets, our refining business delivered record earnings,” Ambani said in a statement.
“The earning power demonstrated by our hydrocarbon businesses in this environment validates our philosophy of investing in world-scale, cost competitive assets, cutting-edge technology and the talent of people,” he said after the close of markets. The company’s stock closed on Friday at Rs.926.85 a share, down 0.06 percent.
In a filing with the stock exchanges, the company said its consolidated net profit for the full fincial year was up 4.8 percent at Rs.23,566 crore, against Rs.22,493 crore in the previous fincial year. The gross refining margin, which defines the earnings from converting crude oil into fuel, was at $10.1 per barrel for the quarter in question, compared to $9.3 per barrel for the like quarter of last year.
On an annual basis, the margin stood at $8.6 per barrel against $8.1 per barrel last year. The company, however, reported a drop in turnover both for the fourth quarter and for the year as a whole — down 33.3 percent at Rs.70,863 crore, and down 13 percent at Rs.388,494 crore, respectively. Ambani said the company had made the highest-ever capital investment into its hydrocarbons business and next-generation digital services initiative, even as its retail business had acquired a wider, pan-India footprint.
“Particularly gratifying, we achieved this, while maintaining our track-record of adhering to highest standards of safety and operatiol excellence.” Other highlights of the consolidated performance of the company were:
- Revenue, or turnover, decreased 33.3 percent to Rs.70,863 crore
- Profits before depreciation, interest and taxes up 3.8 percent to Rs.11,973 crore
- Profit before tax up 11.3 percent Rs.8,509 crore
- Cash profit up 6 percent to Rs.9,516 crore
- Net profit up 8.5 percent to Rs.6,381 crore. (IANS)