Reliance Industries Q4 net dips 9 percent to rupees 3,546 crore

Reliance Industries (RIL), India’s largest private company by market capitalisation, on Thursday reported a 9.4% drop in its quarterly net profit, on falling fuel demand and thinning crude processing margins.

The company’s net profit for Q4 of FY09 stood at Rs 3,546 crore, compared to Rs 3,912 crore in Q4 of 2007-08 . The profits were aided by a one-time gain of Rs 993 crore in the quarter from interest on cash balance and an insurance claim of Rs 60 crore.

Reliance made a one-time provision of Rs 370 crore towards estimated claims on subsidiaries, it said, without elaborating. Before providing for the claims, profits stood at Rs 3,874 crore. Sales for the quarter dipped 24.9% to Rs 29,073 crore from 38,697 crore.

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Value from family differences

It was a terse note on June 18, 2005 from Kokilaben D Ambani that many thought would put an end to a public spat between her two sons-Mukesh and Anil Ambani-over ownership of the Reliance empire. Three years later, the spat continues, the latest over Anil's plans for a stake sale in his flagship Reliance Communications (RComm) to South Africa's MTN. This time, no one's stepping in, not even the matriarch. Paradoxically, after the split, both sides of the Reliance empire have grown manifold in value under the two brothers. Is that why no one's complaining?

In her 2005 statement, Kokilaben Ambani said, "With the blessings of Srinathji, I have today amicably resolved the issues between my two sons keeping in mind the proud legacy of my husband. I am confident that Mukesh and Anil will uphold the values of their father and work towards protecting and enhancing value of over 3 million shareholders of the Reliance group."

Mukesh, who got Reliance Industries Ltd (RIL) and the erstwhile Indian Petrochemicals Corporation Ltd, and Anil, who took control of what was then Reliance Infocomm, Reliance Energy and Reliance Capital, did indeed protect and enhance shareholders' interest. They added new businesses and pumped in much investment and vigour into existing ones.

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Reliance Industries Ltd net up 63% to Rs 19,458 crore

Reliance Industries Ltd(RIL),India's largest company in the private sector, on Monday said its net profit for the fiscal ended March 2008 stood at Rs 19,458 crore, an increase of 63% compared with Rs 11,943 crore in 2007.

However, this included exceptional gains of Rs 4,733 crore in FY08, made from transactions concerning shares of subsidiary Reliance Petroleum Ltd(RPL). RIL sold 4.01% of its stake in RPL last November. Excluding this,net profit for the fiscal increased 28% to Rs 15,261 crore in FY08,compared with Rs 11,943 crore in FY07.

A 36% increase in revenues from the refining & marketing segment,added to high refining margins, fuel led this growth. The company registered refining margins of $15 a barrel in FY08, compared with just $11.7 a barrel in FY07. Refining margins this fiscal was significantly higher than the $7.6-a barrel mark registered by the Singapore benchmark index. However, RI L's raw material consumption increased to Rs 91,446 crore during the fiscal, compared with Rs 77,769 crore in FY07.

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Reliance Retail lines up Esops to retain its staff

Reliance Retail Ltd (RRL), the organised retailing subsidiary of Reliance Industries Ltd (RIL), is understood to be readying a major employee stock options plan (Esop). The Esops are a part of RRL's strategy to reward its employees who the company sees as critical to its ambitious retail roll out strategy.

While the Esops scheme is expected to be upwards of Rs 300-400 crore, there is no confirmation of either the details of the scheme or the number of employees it will cover.

An RIL spokesperson merely said the company does not comment on speculation.

However, what is clear is that the Esops is part of a strategy being put in place by RIL for its retail subsidiary. With over 500 stores in 50 cities in place, and a hefty Rs 25,000 crore investment plan lined up, the company feels training its re tail business employees is also critical for the booming retail industry. The retail industry is known for high attrition, and hence the Esops is also expected to be a key element of the company's retention strategy.


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Mukesh, Mallya, SRK now IPL team owners

Nothing exemplifies better the appeal of cricket in India than the disparate winning bidders for the Board of Control for Cricket in India's (BCCI's) Indian Premiere League (IPL) teams. They range from infrastructure and private equity firms to film stars.

While the organisers raised a whopping Rs 7,000 crore from the auction, franchisees will now market their individual teams and christen them in consultation with IPL. The rights last for ten years, starting from this year.

While GMR Holdings bagged team Delhi for Rs 336 crore, RIL won Mumbai for Rs 447.6 crore. India Cements snagged Chennai for Rs 364 crore, while UB Group picked up Bangalore for Rs 446.4 crore. Preity Zinta-Ness Wadia-Karan Paul-Mohit Burman won the Mohali team for Rs 304 crore, while UK's Emerging Media won Jaipur for Rs 268 crore. Hyderabad went to Deccan Chronicle Holdings for Rs

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