In its first year as a privatised company, the Reliance group-controlled Indian Petrochemicals Corporation Ltd has registered a 90 per cent increase in net profit at Rs 204 crore (Rs 2.04 billion) for 2002-03 from Rs 107 crore (Rs 1.07 billion) in the previous year.

Higher production volumes, a substantial jump in exports, lower interest outgo and cost reduction have resulted in higher profits for the petrochemicals giant. The net turnover of IPCL was up 6 per cent to Rs 5,798 crore (Rs 57.98 billion) from Rs 5,527 crore (Rs 55.27 billion).

The company's interest outgo dropped 22 per cent from Rs 379 crore (Rs 3.79 billion) in 2001-02 to Rs 296 crore (Rs 2.96 billion) in 2002-03.

The volume of production increased 18 per cent to touch 4.4 million tonnes. Exports were up 130 per cent to Rs 424 crore (Rs 4.24 billion) from Rs 184 crore (Rs 1.84 billion) in 2001-02.'

"We are delighted with the complete turnaround in IPCL's performance in the very first year of acquisition by Reliance," IPCL Chairman Mukesh Ambani said.

"It reflects the successful absorption of Reliance's best practices by IPCL in all areas and the positive impact of the measures introduced to reduce cost and increase productivity and efficiency," IPCL chairman Mukesh Ambani said.

According to the company's press release, the 6 per cent increase in net turnover reflects the impact of the 5.8 per cent hike in selling prices and 0.2 per cent in sales volume.

IPCL's gross turnover stood at Rs 9,921 crore (Rs 99.21 billion), 16 per cent more than the Rs 8,524 crore (Rs 85.24 billion) registered in 2001-02.

The inter-divisional transfers stood at Rs 4,123 crore during 2002-03, against Rs 2,997 crore (Rs 29.97 billion) in the previous year.

The company also incurred an extraordinary expenditure of Rs 56 crore (Rs 560 million) towards settlement of water charges for the period up to March 31, 2002.