RIL profit falls 13.55 percent, to buy back shares

January 20th, 2012 - 9:10 pm ICT by IANS  

Mumbai, Jan 20 (IANS) India’s most valuable firm, Reliance Industries Ltd (RIL), Friday said its net profit fell 13.55 percent to Rs.4,440 crore in the third quarter of the current financial year, compared to Rs.5,136 crore in the corresponding period last year.

The company had posted Rs.5,703 crore profit in the second quarter of the current financial year.

RIL said its board of directors had unanimously approved the buyback of shares worth upto Rs.10,440 crore from the open market. The company would buy 3.6 percent of total equity, or 120 million shares, at a maximum price of Rs.870 per share.

The company’s total income rose by 43.48 percent to Rs.86,852 crore in October-December 2011 as compared to Rs.60,530 crore in the corresponding period last year.

Commenting on the results which were disclosed after the markets closed, Chairman and Managing Director Mukesh Ambani said: “The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter, particularly in our refining and petrochemicals businesses.

“Notwithstanding these challenges, Reliance has delivered reasonably robust results with high operating leverage. Our focus remains on enhancing shareholder value by leveraging an exceptionally strong balance sheet, operating top decile assets and investing prudently in future growth engines.”

RIL’s net sales rose to Rs.85,135 crore in the third quarter of 2011-12 as compared to Rs.59,789 crore during the corresponding period the previous year.

The share price of RIL stock rose 1.04 percent at Rs.793.35 at the Bombay Stock Exchange Friday.

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