Mumbai: Country's largest private sector firm Reliance Industries Ltd today reported a 56.67 per cent dip in its net profit at Rs 3,501 crore for the third quarter ended December 31, 2008 amid volatility in prices and margins.
The company had a net profit of Rs 8,079 crore in the corresponding quarter of the last fiscal, the Mukesh Ambani-led firm said in a filing to the Bombay Stock Exchange.
The total turnover also dipped 8.75 per cent to Rs 31,563 crore during the quarter under review from Rs 34,590 crore in the year-ago period.
"This was one of the most challenging quarters for Reliance with volatility in prices and margins. Producers and consumers are coming to terms with slower global trade and economic outlook. Reliance performed commendably in this environment, with high operating rates. We also reached an important milestone in start-up of the RPL refinery," said RIL Chairman and Managing Director Mukesh Ambani.
During the nine month period ended December 2008, the company's net profit dipped 24.53 per cent to Rs 11,733 crore.
The company had a net profit of Rs 15,546 crore in the year-ago period.
However, excluding the exceptional gains in the third quarter of the previous fiscal, the company's net profit would have been at Rs 3,882 crore.
"Exceptional item during the corresponding previous quarter and nine months ended December 31, 2007 represents gains primarily arising out of transactions concerning Reliance Petroleum shares," the company said in the filing.
Shares of the company closed in the positive territory at Rs 1,132.95, up 1.21 per cent on the BSE. The earnings announcement came after the market hours.
Meanwhile, telecom major Bharti Airtel has earmarked around $3.5 billion as capital expenditure (capex) for mobile services and infrastructure business for the next financial year, a top official said here Thursday.
“About $2.5 billion have been earmarked as capex for mobile services and approximately $1 billion for the passive infrastructure,” Bharti Group deputy chief executive Akhil Gupta said.
Gupta said around $3 billion will be invested in the company's tower business run by Bharti Infratel (a wholly owned subsidiary) and Indus Towers, an independent tower company formed by Bharti, Vodafone and Idea to provide passive infrastructure services in India.
However, this capex does not include the amount the company will spend during 3G auctions.
“Most of the money will be raised internally for 3G auctions if the bids are sensible. However, we cannot state any figure right now,” Gupta said.
The company has received spectrum for second generation (2G) mobile services in nine more circles and eight applications are still pending with the Department of Telecom (DoT), Gupta said.
Talking about making corporate governance guidelines more stringent, Gupta said: “Our corporate governance is not guided by any mishap in India or internationally. At Bharti, it is a constant exercise on trying to improve our internal policies.”
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