NEW DELHI: Aided by stronger margins in its core refining business which touched a seven-year high, Reliance Industries Ltd has posted a better-than-expected 12.5 per cent rise in net profit at Rs 6,720 crore (over $1 billion) for the second quarter ended September 2015 as against Rs 5,972 crore in the same period of last year.
However, the firm clocked a 33.8 per cent decline in turnover at Rs 75,117 crore as compared to Rs 1,13,396 crore in the corresponding period of the previous year. The decline in revenue was led by the 50.6 per cent year-on-year fall in benchmark (Brent) oil price.
RIL’s gross refining margins (GRM) for the second quarter stood at seven year high of $10.6 per barrel as against $8.3 per barrel in the same period of last year. The company’s premium over Singapore complex margins widened to $4.3 per barrel during the quarter, the highest level since early 2009.
RIL chairman Mukesh Ambani said: “We achieved record levels of EBITDA and profits for the quarter, underscoring our ability to optimally utilise our assets across the value chain to leverage favorable market conditions. Refining business performance was notable, as it benefited from a combination of high utilisation levels, advantageous crude market opportunities and strong global fuels demand.” RIL shares rose by 0.91 per cent to Rs 912.20 on the BSE.
According to him, petrochemicals segment performance reflects strong volume growth, product mix improvement and lower energy costs. “Reliance Retail achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing. We maintained a rapid pace of construction activity during the quarter. The company’s world-scale petcoke gasification facility and ethylene cracker complex remains on track for its planned 2016 start-up,” Ambani said.
“In digital services, we have substantially completed the network roll-out across the country and initiated the process of beta testing of our network and platforms.” Financial year 2016-17 is projected to be the first year of commercial operations for RJIL.
“The robust operating performance was underpinned by continuing strength in global oil demand, which is expected to grow at 1.8 mb/d in 2015. RIL benefited from product mix flexibility, robust risk management coupled with opportunistic crude sourcing and lower energy cost during the quarter,” it said. Exports from India operations were lower by 35.5 per cent at Rs 42,636 crore ($6.5 billion) as against Rs 66,065 crore in the corresponding period of the previous year due to lower product prices in line with lower crude oil prices.
RIL said retail revenues for the second quarter rose by 22 per cent to Rs 5,091 crore. The business delivered an operating profit of Rs 210 crore as against Rs 186 crore in the same period of the previous year.
