ding period of the previous year.
Turnover achieved for the quarter ended June 30, 2009 was Rs333.1bn, reflecting a decrease of 22.6% over the corresponding period of the previous year.
Decrease in prices accounted for 24.4% reduction in revenue partially offset by higher volumes which accounted for 1.8% growth in revenue. During the period, exports were lower by 38.5% at Rs174.33bn (US$ 3.6 billion) as against US$ 6.6bn in the corresponding period of the previous year.
Consumption of raw materials and purchase of traded goods decreased by 24.6% from Rs341.17bn to Rs257.11bn (US$ 5.4 billion) primarily on account of lower crude and naphtha prices partially offset by higher trading of the goods.
Employee cost was Rs5.46bn (US$ 114 million) for the period as against Rs6.51bn reflecting the impact of cost optimization activities undertaken by the company.
Other expenditure decreased by 36.9% from Rs32.97bn to Rs20.8bn (US$ 434 million) on account of lower conversion cost, selling expenses and exchange rate gain.
Operating Profit before other income and depreciation decreased by 3.2% from Rs61.2bn to Rs59.2bn (US$ 1.2 billion). Net operating margin for the period was higher at 17.8% as compared to 14.2% in the corresponding period of the previous year due to incremental share of Oil & Gas business, stronger petrochemical margins, base effect of lower turnover partially offset by softer margin environment in refining.
Other income was at Rs7.02bn (US$ 147 million) as against Rs2.26bn due to higher interest income on account of higher cash and cash equivalents.
Commenting on the results, Mukesh D. Ambani, chairman and MD, Reliance Industries limited said:
Timely completion with safe and stable start up of the new SEZ refinery and the deep-water, oil and gas KG D6 block are noteworthy accomplishments. These projects will not only play a significant role in shaping the future growth at RIL but more importantly will help change the energy landscape of India and the industry globally.”
Depreciation was higher by 41.4% at Rs16.28bn (US$ 340 million) against Rs11.51bn in the corresponding period of the previous year primarily on account of higher depreciation in Oil & Gas business segment.
Interest cost was higher at Rs3.45bn (US$ 72 million) as against Rs2.94bn. The gross interest cost was lower at Rs6.75bn (US$ 141 million) as against Rs7.78bn for the corresponding period of the previous year on account of lower interest rates partially offset by higher level of debt. Interest capitalized, during the period, was lower at Rs3.3bn (US$ 69 million) as against Rs4.84bn in the corresponding period of the previous year.
The outstanding debt as on 30th June 2009 was Rs. 51,780 crore (US$ 10.8 billion) compared to Rs. 53,457 crore as on 31st March 2009. Net gearing as on 30th June 2009 was 19.5% as compared to 19.2% on 31st March 2009. RIL has cash and cash equivalents of Rs. 21,827 crore (US$ 4.6 billion). These are in fixed deposits, certificate of deposits with banks and Government securities and bonds. RIL’s net debt was approximately equivalent to 1.1 times annualized PBDIT for the quarter ended 30th June 2009.
The capital expenditure towards projects including interest capitalization for the period ended June 30, 2009 was Rs40.29bn (US$ 841 million). RIL has domestic credit ratings of AAA from CRISIL and FITCH. RIL has investment grade ratings for its international debt from Moody’s and S&P as Baa2 and BBB respectively.
