Reliance Industries Q1 net profit higher at Rs.3264 Crores

Reliance Industries Ltd has announced the following Unaudited results for the quarter ended June 30, 2007.

The Company has posted a net profit of Rs 32640 million for the quarter ended June 30, 2007 as compared to Rs 25470 million for the quarter ended June 30, 2006. Total Income (net of excise) has increased from Rs 245660 million for the quarter ended June 30, 2006 to Rs 281610 million for the quarter ended June 30, 2007.

The company has reported an Earnings Per Share (EPS) of Rs.23.4 for the quarter ended June 30, 2007 compared to Rs.18.3 during quarter ended June 30, 2006.

The Scheme of amalgamation of Indian Petrochemicals Corporation Ltd (IPCL), with the Company has been approved by the shareholders and creditors of both the companies and is submitted to the Hon’ble High Courts of judicature at Mumbai and Gujarat for sanction u/s 391 and 394 of the Companies Act,1956. The Hon’ble High Court of Mumbai has sanctioned the scheme of amalgamation on June 12, 2007. The sanction of Hon’ble High Court of Gujarat is pending. In terms of the Scheme the appointed date for amalgamation is April 01, 2006. Upon receipt of statutory approvals, the Scheme will be given effect to in the audited financial statements for the year ended March 31, 2007 and un-audited financial statements for the quarter ended June 30, 2007 will be accordingly restated.

The Company, had revalued plant, equipment and buildings situated at Patalganga, Hazira and Jamnagar in 2005-06. Consequent to the revaluation, there is an additional charge for depreciation of Rs 4370 million (US$ 107 million) for the quarter and an equivalent amount has been withdrawn from Revaluation Reserve. This has no impact on the profit for the period.

The Company had revalued its plant and machinery situated at Patalganga and Naroda in 1997-98. Consequent to the revaluation, there is an additional charge for depreciation of Rs 60 million (US$ 1.5 million) for the quarter and an equivalent amount has been withdrawn from Revaluation Reserve. This has no impact on the profit for the period.

Reliance Commercial Associates Ltd, Reliance Financial Distribution and Advisory Services Ltd, RIL (Australian) Pty Ltd, Reliance Hypermarket Pvt Ltd have become subsidiaries of the Company.

The stock closed on Friday at Rs.1866.45, down by Rs.74.55 or 3.84%. The total traded quantity was 2200121 compared to 2 week average of 884360. The stock hit an intraday high of Rs.1938 and low of Rs.1857.

Source : Equity Bulls

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