The fourth quarter ended on a good note for MukeshAmbani as Reliance Industries Limited (RIL) saw a rise of 32 percent in its net profit. Being strongly backed by strong margins in oil refining business, this net profit jump is highest as compared to past three years.
RIL has reported a growth of 4.8 percent in net profit at Rs. 21,003 crore as compared to Rs. 20,040 crorein the last year. The turnover jumped from Rs.339,792crore to 371,119 crore reporting an increase in turnover by 9.2 percent.
Owing to the world’s biggest oil refining complex owned by RIL at Jamnagar, the company reported a better than estimated profit of Rs.5,589 crore in the quarter which ended on March 31, 2013 as compared to Rs. 4,236 crore in the previous year.
Overall, refining business and petrochemical revenues saw a rise of 11.6 percent and 9.3 percent respectively. This rise in revenues also nullified the effect by the decrease of oil and gas revenues. It also earned an average of USD 10.1 on refining every barrel of crude oil to fuel as compared to USD 7.6 barrel gross refining margin in the last year. This refinery was also awarded the prestigious “International Refiner of the Year 2013” at HART Energy’s 27th World Refining & Fuel Conference held in USA. Reliance was awarded because of its ability to produce cleaner and higher quality fuel using diverse and innovative methods.
MukeshAmbani was certainly elated to see the growth of the company, said,” Reliance has delivered another year of strong operating performance in an environment of continued volatile economic conditions. The growth in earnings was largely driven by strong and improved refining margins during the year.”
According to the Chairman of Reliance, the company will look forward to strengthen its presence in the retail sector which has already crossed the annual revenue of Rs. 10,000 crore by the end of the financial year. “ We are working on projects that form the foundation of our aspirations to become one of the world’s most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India.” Added Ambani. Reliance is also coming up with fourth generation voice and data services across India under the brand-Reliance JioInfocomm which will turn the current telecommunication industry’s face.
Reliance Jioinfocomm and Reliance Retail will be the major revenue boosters for RIL in the coming years apart from its petrochemical business.