Mukesh Ambani led Reliance Industries Limited (RIL) has reported an incredible growth of 16.8 per cent in its fourth quarter net profit of Rs. 5,500 crore as against Rs. 4,710 crore in its March end quarter. This is RIL’s highest ever quarterly profit generated solely from operations. Overall sales are likely to go up by 19% to Rs 68,500 crore with respect to the quarter ended March 2011 as against Rs 57,570 crore in same quarters the previous year. On quarter-on-quarter basis, RIL’s net profit is likely to go up by 7.1% and sales are expected to rise by 14.6%.
RIL has kicked off the 2011 financial year on a high note with its refining complex taking on the major credits. Although the K6 block has reported dwindling results, the prospect of development gauging from Reliance’s many derivative ventures in energy and petroleum quarter, including the now- infamous deal it signed with British energy major BP, holds the prospect of taking the profits to a new high. RIL’s deal with BP to sell 30% stake in 23 of its exploration blocks has invoked much confidence from the investors, taking the share price to more than Rs. 1,000 valuation.
The company had shut down its fluidized catalytic cracking unit (FCCU) for six weeks for maintenance earlier in February leading to a slight fall in the refinery margins. Yet the improvement in the systems now can be expected to generate enhanced output in the following quarters.
Performance of petrochemical end of Reliance has invited good reviews in light of the present status of global fiber market. Polyester margins continue to be higher because of the tighter global cotton market, and with its big plans of expansion lined up for this category with respect to the ever growing demand for fiber, the margins at likely to hit sky.
Overall, Reliance Industries Ltd. has encountered many highs in the previous quarter and with many prospective deals lined up for the year, the figures are assuredly set to rise.
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