RIL's Q1 net rises nearly 19% to Rs5,352 cr; revenue dips

Reliance Industries Ltd (RIL) has reported a net profit of Rs5,352 crore ($0.9 billion) for the first quarter of the current financial year (2013-14) against a net profit of Rs4,503 crore in the corresponding period of the previous financial year, an 18.9 per cent increase year-on-year.

RIL's turnover for the quarter ended 30 June 2013, however, was lower at Rs90,589 crore ($15.3 billion) against Rs94,927 crore in the corresponding quarter of the previous year.

The 4.6 per cent decrease in revenue has been brought about by a 3.4 per cent decline in volume and a 1.2 per cent fall in prices, RIL said in a release.

Exports were higher by 3.2 per cent on a year-on-year basis at Rs57,026 crore ($9.6 billion) as against Rs55,261 crore in the corresponding period of the previous year.

RIL said its raw material consumption decreased by 7.0 per cent to Rs73,729 crore ($12.4 billion) from Rs79,258 crore, mainly on account of lower crude oil prices and slightly reduced throughput in the refining business.

Employee costs were higher at Rs899 crore ($151million) for the quarter against Rs851crore in the corresponding period of the previous year.

Other expenditure for the April-June 2013 quarter increased by 8.9 per cent to Rs6,296 crore ($1.1 billion) primarily due to higher expenses on account of power and fuel consumption and stores and spares consumptions, RIL said.

Operating profit before other income and depreciation increased by 3.9 per cent on a year-on-year basis to Rs7,075 crore ($1.2 billion) from Rs6,811 crore, due to higher refining margins and petrochemicals business. This, however, was partly offset by lower production in the oil and gas business.

Other income was higher at Rs2,535 crore ($427 million) as against Rs1,904 crore in the corresponding period of the previous year. This was mainly on account of profit on sale of investments in the fixed income instruments and higher average liquid investments.

Depreciation (including depletion and amortisation) declined by 13.2 per cent to Rs2,138 crore ($360million) compared to Rs2,463 crore in the corresponding period of the previous year.

This was primarily due to lower production of oil & gas, RIL noted.

Interest cost was higher at Rs810crore ($136million) as against Rs784 crore in the corresponding period of the previous year, mainly due to depreciation of the Indian rupee.

This resulted in gross interest cost being higher at Rs957 crore ($161 million) as against Rs822 crore in the corresponding period of the previous year, the company stated.

Interest capitalised stood at Rs147crore ($25 million) as against Rs38 crore in the corresponding period of the previous year.

Profit after tax was higher by 18.9 per cent at Rs5,352 crore ($0.9billion) as against Rs4,503crore in the corresponding period of the previous year.

Basic earnings per share (EPS) for the quarter ended 30 June 2013 was Rs16.6 ($0.3) against Rs13.8 in the corresponding period of the previous year.

Outstanding debt as of 30 June 2013 was Rs80,307 crore ($13.5billion) compared to Rs72,427 crore as on 31 March 2013.

RIL had cash and cash equivalents of Rs93,066 crore ($15.7billion). These were in bank deposits, mutual funds, CBLO, CDs and Government securities/bonds.

RIL is debt free on a net basis as of 30 June 2013. The net addition to fixed assets for the quarter ended 30 June 2013 was Rs10,523 crore ($1.8billion), including exchange rate difference capitalisation.

Capital expenditure was principally on account of ongoing expansion projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira.

RIL retained its domestic credit ratings of AAA from Crisil and FITCH and an investment grade rating for its international debt from Moody's as Baa2.

S&P has raised the long-term corporate credit rating of RIL to BBB+ from BBB.

Commenting on the results, Mukesh D Ambani, chairman and managing director, Reliance Industries Limited, said: ''Our performance this quarter reflects higher operating rates and embedded options in crude sourcing and product placement, given the size and scale of the refining business.

Robust growth in petrochemical products demand augurs well for our biggest ever expansion programme. Retail business continues to make remarkable progress and registered a 53 per cent growth in revenues during the first quarter. At Reliance, we are committed to invest for growth in India, for India.''