Led by subdued performance of the petrochemical and oil & gas segments,Reliance Industries (RIL),operator of the worlds biggest oil refining complex,on Monday reported a 5.7 per cent decline in net profit in the July-September quarter over the same period last year.
This comes even as the refining and marketing business witnessed a strong growth on the revenue and profitability fronts. However,the company witnessed a 20.2 per cent sequential jump in profits in the September 2012 quarter,in line with the Streets expectations.
Net profit during the quarter under review stood at Rs 5,376 crore,falling short of the Rs 5,703 crore registered in July-September 2011. The company had registered a net profit of Rs 4,473 crore during the quarter ended June 2012. For the first half of the year 2012-13 net profit fell by 13.3 per cent to Rs 9,849 crore from Rs 11,364 crore in the corresponding period last year.
Turnover for the company stood at Rs 93,265 crore and was up by 15.4 per cent over the same quarter last year. For the half year ended September 2012,RIL registered a turnover of Rs 1,88,191 crore up by 14.4 per cent on a year-on-year basis. The company said that higher prices accounted for 15.2 per cent growth in revenue and partly offset the decrease in volumes by 0.8 per cent.
The other income for the company also rose to Rs 2,112 crore in September 2012 from Rs 1,102 crore in September 2011 on account of higher average liquid investments.
Exports rose by 10.6 per cent to Rs 1,12,667 crore in the first half as against Rs 1,01,872 crore in the same period last year. The results are very good and the refining business has surprised positively and entire growth in operating profit for the company over the previous quarter has come from the refining business, said SP Tulsian,an independent market expert.
While the companys outstanding debt rose to Rs 70,059 crore as on September 30,2012,its cash and cash equivalents stood at Rs 79,159 crore ($14.9 billion). The refining and marketing segment that accounts for majority of the revenue and profit witnessed an uptick with revenue rising by 23.1 per cent over the same quarter last year. EBIT (earnings before interest and taxes) for the segment rose by 15.2 per cent year-on-year. The gross refining margin (GRM) during the quarter stood at $9.5 a barrel (bbl) as compared to Singapore GRM of 9.13 in the same quarter. The companys GRM has also significantly improved from its GRM of $7.6/bbl in the quarter ended June 2012. The GRM for the first half of 2012-13 was at $8.5 /bbl as compared to $10.2 /bbl in the same period last year.
The petrochemical segment witnessed a 4.7 per cent revenue growth on a year-on-year basis but EBIT fell by 28.2 per cent during the same period while the oil & gas segment witnessed a 36.7 per cent decline in its year-on-year revenue growth and a 43.4 per cent decline in its EBIT growth.
The firms stock,which closed at Rs 823.20,up 0.5 per cent from the previous close,has gained nearly 15 per cent in the past three months.