RIL Q4 profit up 32 on robust refining margins

Reliance Industries RIL posted a 32 per cent surge in its profits for the fourth quarter of 2012-13,as a strong rebound in margins at its core refining business compensated for a slide in revenues

Reliance Industries RIL posted a 32 per cent surge in its profits for the fourth quarter of 2012-13,as a strong rebound in margins at its core refining business compensated for a slide in revenues.

RILs net profit in the January-March quarter was recorded at Rs 5,589 crore,pushed by higher other income of Rs 2,243 crore,even as revenues fell 1.4 per cent to Rs 86,618 crore.

Oil and gas revenues were down nearly 39 per cent in the quarter. For the full fiscal year,gas output at its key KG Basin offshore field fell 39 per cent.

On a sequential basis,RIL reported a 1.6 per cent growth in net profit during the January-March 2013 quarter. Gross refining margins GRM came in at a strong 10.1/bbl compared to 9.6/bbl in the previous quarter.

The GRMs are also at a 1.5 premium to the benchmark Singapore GRM. The company also reported net operating margins of 8.5 per cent up from 8.1 per cent in the October-December quarter.

RILs profit before depreciation,interest and tax,PBDIT however,were flat at Rs 10,068 crore. A company release said the PBDIT has been under pressure due to a reduction in the oil and gas and petrochemicals earnings.

RILs turnover in the quarter stood at Rs 86,618 crore,down by around 10 per cent sequentially,owing to weak oil and gas revenues with the plant in Jamnagar shut for two weeks for maintenance. The outstanding debt position for RIL at the end of March 31,2013,stood at Rs 72,247 crore. RIL had cash and cash equivalents to the tune of Rs 82,975 crore.

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The stock ended Tuesdays session at Rs 804.50 up 1.4 per cent on the BSE. The companys market capitalisation stood at Rs 2,59,778 crore. RIL chairman Mukesh Ambani said: The growth in earnings during the year was largely driven by strong and improved refining margins. Production growth from our investments in unconventional liquids-rich resource plays in North America has reinforced our confidence in creating long-term value for our shareholders from this diversification.

The GRMs have been helped by the improvement in the demand for petrol in Asia. The company is also benefiting from a strategy of shifting to cheaper heavy crude to produce same products using lighter more expensive crude.

For 2012-13,RILs net profit stood at Rs 21,003 crore up 4.8 per cent over the previous year. Revenue was up 9.2 per cent at Rs 3.39 lakh crore. The consolidated turnover for the year was up 10.8 per cent and stood at Rs 3.97 lakh crore,while the consolidated net profit was up 5.9 per cent and stood at Rs 20,879 crore. With FE