Treasury income accounted for about 27.55 per cent of RIl’s record high net income of Rs27,630 crore in the last fiscal ended March 31 even as its share has come down for two consecutive years
In 2013-14, this share was a whopping 40.53 per cent. For the financial year ended March 2015 the share of Reliance Industries ltd’s treasury profit stood at a high 36.04 per cent.
As per the audited numbers for 2015-16, announced by the company last Friday, of the Rs27,630 crore consolidated net for the year -- the highest ever due to 7-year high GRM, in spite of a massive over 23 per cent fall in revenues due to the steep fall in crude price, RIl has netted as much as Rs7,612 crore from treasury operations.
It is however down 10.39 per cent from Rs8,495 crore in 2014-15, when its net income stood at Rs23,566 crore.
Of the consolidated net of Rs21,984 crore in 2013-14 that the company had reported, the treasury income came in at a staggering 40.53 per cent at Rs8,936 crore, which was its highest-ever, as its core business of crude refining and gas exploration were not doing well.
In 2012-13, the contribution of treasury income stood at 37.14 per cent at Rs7,800 crore.
On a quarterly basis in March, the Mukesh Ambani-led company had a treasury income of Rs1,758 crore, down from RsRs 2,172 crore a year ago. In the December quarter, its other income, as the company calls it, stood at Rs2,426 crore.
From a sequential basis, its other income in the March period declined by a tad over 19 per cent, while on a year-on-year basis it was down from 27.53 per cent.
Over the past two years, Reliance has been paring its treasury play and moving its investments to bank deposits, mutual funds and government securities.
It may be noted that the Reserve Bank in 2014-15 had frowned upon the large play of big corporates in the treasury markets, at a time when the rupee was bleeding, companies like Reliance, which then was the largest treasury player.In the first quarter of 2015-16, Reliance’s trading profit had narrowed to just about Rs1,832 crore which is 29.4 per cent of the overall net income of Rs6,222 crore.
Known for its largest cash balance among the domestic companies, RIl had Rs86,033 crore in the March 2016 quarter, which was down form Rs 91,736 crore in the December quarter.
The company group deputy chief financial officer V Sriknath had said last Friday while announcing the earnings that the money was parked in bank deposits, mutual funds, certificate of deposits and Government bonds.
Due to the massive Rs1.13 trillion (Rs1.13 lakh crore) capex for the ongoing refinery and petchem expansions and the forthcoming telecom venture, its gross debt also rose to Rs1,81,079 crore in the March period from Rs1,78,07 crore in the December.