Reliance Industries reports Rs7,206-cr net profit for Q2

Reliance Industries Limited (RIL) today reported a consolidated net profit of Rs7,206 crore ($ 1.1 billion) for July-September 2016-17, a 22.9 per cent year-on-year fall compared to the Rs9,345 crore reported in the comparable quarter of the previous financial year.

Profit before tax (excluding exceptional item) increased by 43.1 per cent to Rs 7,113 crore ($1.5 billion) against Rs 5,035 croe in Q2 of the previous fiscal.

RIL, which owns the world's biggest refinery at Jamnagar, said its consolidated profit before depreciation, interest and tax (PBDIT) for the quarter stood at Rs13,551 crore ($2.0 billion), up 24.8 per cent.

Consolidated revenue was higher at Rs81,651 crore compared with Rs74,490 crore reported for the same period a year ago, the company said in a filing with the stock exchanges.

The Mukesh Ambani-led RIL said its stand-alone net profit for the quarter was higher at Rs7,704 crore  ($ 1.2 billion), up 17.9 per cent year-on-year.

The company had reported a stand-alone net profit of Rs6,534 crore for the corresponding quarter of the previous year.

RIL said its revenues fell 0.27 per cent YoY to Rs64,340 crore for the quarter, compared with Rs64,515 crore reported for the similar quarter last fiscal.

The refiner said gross refining margin (GRM) contracted to $10.1 a barrel in September quarter from $10.6 a barrel in the year-ago period.

Refining revenue came in at Rs51,838 crore (Rs51,265 crore YoY), while revenue for the petchem segment stood at Rs21,923 crore (Rs19,851 crore YoY). Refining EBIT margin at 11.4 per cent for the quarter was higher than 10.5 per cent that the company reported in the year-ago quarter. Petchem EBIT margin at 16.2 per cent too was higher than 12.6 per cent the refiner reported in the year-ago quarter.

The benchmark Singapore GRM – a gauge of Asian refineries had risen 2.8 per cent sequentially to $5.2 a barrel in September quarter, largely due to higher realisation from fuel oil. Analysts in the ET Now poll had projected the oil major to report a GRM of $10 a barrel for the quarter.

The company had a cash of $12.4 billion as of September 30, while outstanding debt stood at $28.4 billion. he company incurred a capex of $2.6 billion during the quarter.

Commenting on the results, Mukesh D Ambani, chairman and managing director, Reliance Industries Limited said: ''The Company has achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings. Refining business sustained high profitability in a tough environment highlighting our exceptional refining assets, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins. Our projects in the hydrocarbon chain are at advanced stages of mechanical completion and precommissioning activities. These projects will further strengthen our position as a leading operator in the energy and materials businesses.

''We are delighted and humbled by the enthusiastic adoption of Jio by India. Jio is built to empower every Indian with the power of data,'' Ambani added.

RIL saw its cost of raw materials increase by 4.7 per cent to Rs43,134 crore ($6.5 billion) from Rs41,191 crore on Yo-Y basis primarily on account of higher volume of crude processed and increased petrochemicals production during the quarter.

Exports from India operations were lower by 11.5 per cent at Rs37,717 crore ($5.7 billion) as against Rs42,636 crore in the corresponding period of the previous year due to lower product prices.

Employee costs were higher by 17.7 per cent at Rs2,017 crore ($303 million) as against  Rs1,713 crore in the corresponding period of the previous year due to higher payouts and increased employee base.

Other expenditure, however, decreased by 8.6 per cent to Rs9,062 crore ($1.4 billion) against Rs9,919 crore in the corresponding period of the previous year, primarily due to lower expenses on account of exploration in relinquished blocks and blocks under evaluation.