To rope in strategic partners for its telecom business
Reliance Industries on Tuesday reported a 32.3 per cent rise in net profit at Rs. 4,851 crore in the quarter ended June 30, 2010, against Rs. 3,666 crore in the corresponding period in the previous year.
The turnover has risen by 88 per cent to Rs. 61,007 crore from Rs. 32,441 crore. Exports almost doubled to Rs. 32,849 crore, says a company release.
The operating profit, before other income and depreciation, increased by 46.3 per cent to Rs. 9,342 crore from Rs. 6,384 crore.
Net operating margin was lower at 15.3 per cent against 19.7 per cent in the corresponding period of the previous year due to base effect and softer margin environment in petrochemicals partially offset by incremental share of the higher margin oil and gas business.
The figures for the corresponding period have been restated, wherever necessary, to make them comparable.
During the quarter under reference, 16.89 million tonnes of crude was refined, reflecting a utilisation rate of 109 per cent. This is the highest operating rate in the world, reflecting the company's leadership in operating the assets and the global acceptance of the products.
Meanwhile, RIL said it would rope in several strategic partners for its telecom business from among leading global service providers, as also device manufacturers and technology firms.
Hinting that its telecom offering would be low-cost in nature, the company said it would follow “an asset light strategy” for the business, which it entered last month through the acquisition of 95 per cent stake in Infotel Broadband Services Pvt. Ltd.
“RIL plans to create world-class state-of-the-art technology using an asset light strategy. RIL will forge several strategic relations with a host of leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to leapfrog India to the 4G revolution,” says the release.
“RIL sees the broadband opportunity as a new frontier of knowledge economy in which it can take a leadership position and provide India with an opportunity to be in the forefront among the countries providing world-class 4G network and services,” it added.