RIL Q2 net up 7.4%; high oil prices push revenue by 39.5%

RIL Q2 net up 7.4%; high oil prices push revenue by 39.5%

Mumbai: Country’s top private sector firm Reliance Industries Limited (RIL) said that its second quarter net profit grew by 7.4% to Rs4,122 crore, while revenue rose by 39.4% primarily due to higher crude prices.

The company’s second quarter revenue rose to Rs44,938 crore in the three-month period ended 30 September, against Rs32,211 crore in the year-ago period.

The net profit after tax rose from Rs3,837 crore in July-September quarter of last fiscal, RIL said.

The growth was primarily due to a robust performance in the refining and marketing businesses on the back of increase in product prices, driven by higher crude oil prices.

“We are at the final leg of capital expenditure in our key businesses and will see cash flows from these investments in the following quarters," RIL Chairman and Managing Director Mukesh Ambani said.

The capital expediture in the first half of the year stood at Rs11,401 crore, primarily in oil and gas business.

“Leading economies across the globe are passing through some unprecedented times. Our businesses are gearing to meet these challenges," Ambani said.

RIL’s net profit for the first half of this fiscal rose by 10% to Rs8,232 crore, while revenue rose by 38% during this period to Rs89,163 crore.

RIL said that 36% growth in first-half revenue was due to increase in prices, while increase in volumes accounted for another 2% growth.

Its exports rose by 57% to Rs58,180 crore ( $12.4 billion) during six-month period ended 30 September.

RIL said that refining and marketing revenue rose by 50% in the first six months of the fiscal to Rs68,980 crore, ‘mainly due to high product prices driven by high crude oil prices.’

Shares of Mukesh Ambani-led RIL, which announced the results after trading hours today, dropped 7.62% to close at Rs1,215.25 at the BSE in a weak market.

RIL said that its refining margins were affected by divergent margin scenario witnessed in the industry globally and it managed to sustain its margins primarily on the back of efficient crude oil sourcing, ability to produce globally acceptable products and flexibility in its crude bucket.

RIL said that its share in Tapti block production registered strong growth, while that in Panna-Mukta block production declined due to a shutdown in June.

Production of the company’s petrochemical products rose by 2% in the first half of the current fiscal to 10 million tonnes from 9.8 million tonnes.

At the same time, consumption of raw materials and purchase of traded goods rose by 59% to Rs70,232 crore ($15 billion), mainly on account of higher crude and naphtha prices and lower purchase of traded goods due to reduction in retail marketing of transportation fuels.

On Reliance Petroleum, it said 97% of the overall progress has been achieved, construction is nearing completion and the focus has shifted from mechanical construction to start up.

About its retail business arm Reliance Retail Ltd, the company said that it now operates a total of 816 stores across the country and two new formats were launched during the quarter.