Reliance Industries has posted its highest ever rise in quarterly profits, while still lagging behind street estimates. India’s biggest company reported a 16.7% climb in first quarter profit to Rs5,661 crore. And revenue went up 37.2% to Rs83,689 core.
The numbers from RIL’s hydrocarbons businesses was mixed. While its operations at its massive oil refinery in Jamnagar produced profits, the gas business didn’t do as well. The firm’s gross refining margins rose to $10.3 per barrel from $7.3 in the year-ago period. But gas output from RIL’s flagship KG D6 field dropped during the quarter by 18% to 156.2 billion cubic feet.
The KG D6 block was once among RIL’s most lucrative assets. But output there has fallen in recent times. Meanwhile on Friday the government approved an RIL stake sale to energy firm BP. RIL is counting on BP’s technology to help it boost production from the field. Its shares rose 0.98% on the BSE even as the Sensex gained 0.8%. RIL announced it numbers after markets had closed.
In other news, the Reserve Bank has made it clear that it will continue tightening monetary policy. Releasing its quarterly macroeconomic review on Monday, RBI said its stance was necessary to fight inflation. It justified the hawkish stance saying the high inflation is expected to be stubborn. And its new forecast for the wholesale price index is now 8.6% instead of the previous 7.5%. But the Reserve Bank also admitted the hikes in policy rates would eat into demand and slow growth. It then cut its growth forecast for the current fiscal to 7.9% of GDP from 8.2%. RBI’s latest review came a day before its mid-quarter policy review, in which it’s widely expected to hike interest rates again.
And finally, global equities may have been weak on Monday, but Indian markets ignored them and surged ahead. The Sensex jumped 149 to 18,871. And the Nifty climbed 46 to 5, 680.