Reliance Industries today posted a 13.7 per cent jump in its first quarter net profit to almost USD 1 billion, the highest quarterly profit by a private firm, on the back of higher refining margins, better petrochem earnings and surge in US shale gas business.
The net profit in April-June rose to Rs 5,957 crore, or Rs 20.3 per share, up 13.7 per cent from Rs 5,237 crore, or Rs 17.8 a share, in the same period a year ago, the company said in a statement.
Reliance Industries (RIL) is the first company in the private sector in India to post USD 1 billion net profit in a quarter.
Turnover surged 7.2 per cent to Rs 107,905 crore.
“RIL has delivered a record level of consolidated net profit, this quarter,” said Mukesh Ambani, Chairman and Managing Director, RIL. “This was achieved despite weak regional refining margins and a planned turnaround in our refinery.”
The Mumbai-based operator of the world’s biggest oil refinery complex earned USD 8.7 on turning every barrel of crude oil into fuel in Q1 as compared to USD 8.4 gross refining margin (GRM) in the same period a year ago.
The GRM was, however, lower than USD 9.3 per barrel in the previous January-March quarter While revenue from refinery business rose 7.2 per cent, earnings from petrochemical business soared 9.3 per cent.
But the surprise came from oil and gas production business that posted 27.3 per cent rise in revenue and more than doubled pre-tax segment profit. This was largely due to the firm’s US shale gas business, which gave a revenue of Rs 1,617 crore, higher than RIL’s domestic oil gas earning of Rs 1,557 crore.
“The petrochemicals business performance highlights the strength of our portfolio-mix and end-market diversity,” Ambani said. “We have a great pipeline of new projects which will give Reliance an enduring competitive advantage.”
RIL, he said, was further expanding its retail business in existing markets while exploring newer markets and channels.
Mukesh Ambani-led Reliance Industries Q1 net profit up 13.7 per cent, beats estimates
(Reuters) – Indian energy conglomerate Reliance Industries Ltd posted a 13.7 percent rise in quarterly net profit, beating street expectations, helped by strong revenue growth in its refining and oil and gas businesses.
Reliance, controlled by India’s richest man, Mukesh Ambani, posted net profit of 59.57 billion rupees ($988 million) for its fiscal first quarter ended June, up from 52.37 billion rupees a year earlier.
Analysts on average expected the company, which operates the world’s biggest refinery complex in a single location in western India, to earn a net profit of 56.14 billion rupees, according to Thomson Reuters data.