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vipinlara's review
Investment Sector: Emerging Markets Submitted by Vipinlara 
4 months ago Add Tag |
Riding on higher gross refining margins (GRM) of $15.5 per barrel and some assistance from non-operational income, Reliance Industries (RIL) has reported a 24% increase in its fourth-quarter (January-March 2008) net profit to Rs 3,912 crore ($975 million), excluding exceptional items.
In terms of statistic, this was on a turnover of Rs 38,697 crore, an increase of 32% over the corresponding quarter last fiscal. The operating margin (excluding other and exceptional income) during the fourth quarter declined by nearly 270 basis points to 16.1% of net sales against 18.8% compared to the corresponding period last year.
For the entire year, RIL’s net profit grew by 28% to Rs 15,261 crore on revenues of Rs 139,269 crore, an increase of 18% over the previous year. The company’s profit during the year was helped along by a Rs 986-crore profit from foreign exchange transaction and sales tax savings due to higher exports and conversion of its Jamnagar refinery to an export-oriented unit (EOU).
In the middle- to long-term, the company expects its GRM to be robust because of the global demand-supply mismatch in spite of new capacities. The company claimed that outside the US, refineries are working at an extended utilisation ratio of 80-90%, which will keep the demand-supply balance in favour of demand for at least the next few years.
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