Reliance Industries net profit rises 0.8 per cent in Q4

Reliance Industries on Friday (April 18) declared yearly dividend of 95 per cent entailing a payout of Rs 3,268 crore ($ 545 million). The Sensex bellwether reported consolidated net profit of Rs 22,493 crore for the year ending March 2014, clocking growth of 7.7 per cent over 2013. Turnover for the group grew 9.3 per cent to Rs. 446,339 crore.

Standalone full-year profits were at Rs 21,984 crore in 2014, up 4.7 per cent from previous year's Rs 21,003 crore. Net profit for the quarter was at Rs. 5,631 crore, registering growth of 0.8 per cent compared to Rs 5589 crore for the quarter ending March 2013.

Full-year standalone revenues rose by 8.1 per cent from Rs 371,119 crore to Rs 401,302 crore following a recovery in gross refining margins, and increased profits from polymers and downstream products.

For the quarter ending March 2014, standalone revenues increased by 12.9 per cent to Rs 97,807 crore compared to Rs 86,618 crore for the quarter ending March 2013. Earnings per share were at 17.4 per cent compared to 17.3 per cent in the same quarter last year.

Outstanding debt as on 31st March 2014 was Rs. 89,968 crore ($ 15.0 billion) compared to Rs. 72,427 crore as on 31st March 2013. On 31st December 2013, the figure was at Rs. 81,330 crore ($ 13.2 billion). Cash and cash equivalents stood at of Rs. 88,190 crore ($ 14.7 billion), the company said in a release, down from Rs. 88,705 crore ($ 14.4 billion) in December 2013.

Reliance Industries has been the centre of a good deal of controversy during the last quarter, including allegations of a fall in the output of the company, and of collusion with government and agencies, particularly from political quarters such as the Aam Aadmi Party.

The company attributed the fall in production from the KG-D6 gas field to geological complexity and natural decline in the fields, besides higher than envisaged water ingress. The field produced 2.03 million barrels of crude oil, 0.28 million barrels of condensate and 178 BCF of natural gas in FY14, a reduction of 30%, 30% and 47% compared to last year, the release said.

Issues cropped up on the appointment of a former chief justice of New South Wales, Justice James Spiegelman, appointed by the Supreme of Court of India as an arbiter in the issue. The appointment was later revoked.

Reliance's retail business saw a same-store-sales growth of about 23 per cent in the year as customers responded well to its products, services and value propositions, the company said.

Sales in the business, where in the company operated 1,691 stores as of March 31, 2014, grew by 34 per cent to Rs. 14,496 crore and reported a PBDIT of Rs. 363 crore. In the fourth quarter, sales grew to Rs 3,639 crore in the fourth quarter, up 19 per cent from the year ago period.

In the year ending March 14, the company's stock price appreciated from Rs 774.10 to Rs. 958.75. The stock ended the day at Rs. 958.75 at end of trade Friday on the BSE after reaching the day's high of Rs 962.80. Recent improvement in Gross Refining margins are expected to drive growth in the company, Angel Broking said in a report. GRMs improved in the last quarter of FY14 to $ 9.3/bbl as compared to $ 7.6/bbl in the previous quarter, the release said.

Exports Development Canada has provided $500 million in financing, the company said in a release. "The new financing package helps diversify RIL's funding sources and extends the maturity profile of its long- term debt in a cost effective manner," said the release.

(With inputs from Arpita Mukherjee)