RIL Q1 net profit up 4.4%; standalone growth at 12%

Friday, 24 July, Mumbai: Reliance Industries today posted 4.4 per cent rise in first-quarter consolidated net profit to Rs 6,222 crore, while standalone profit grew 12 per cent to highest level in over six years beating market estimates.

The standalone net profit stood at Rs 6,318 crore in the April-June quarter, up from Rs 5,649 crore in the year-ago period, on six-year high refining margins and strong petrochemicals earnings.

The profits in the first quarter of the current fiscal beat the street estimates and were at their highest level in more than six years.

Reliance Industries Ltd (RIL), the operator of world’s largest refining complex that can process low-grade crude and switch between fuels depending on market prices, earned US $10.4 on turning every barrel of crude into petroleum product.

This was the highest gross refining margin it has earned in six years as compared to US $10.1 per barrel margin in preceding January-March quarter and US $8.7 of Q1 of 2014-15 fiscal.

The company, which is investing US $12 billion to boost petrochemical capacity and refinery processes as well as build facilities to import ethane from US, said a 23% dip in its turnover to Rs 83,064 crore was mostly because of 43.5% dip in oil prices.

Before the earning announcement, RIL shares fell 1.9 per cent to close at Rs 1,025.05 on the BSE.

Consolidated net profit rose 4.4% to Rs 6,222 crore in April-June quarter of the current fiscal as opposed to Rs 5,957 crore a year ago, the statement said.

Chairman Mukesh Ambani said financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment.

“The sharp increase in demand for transportation fuels helped us realise strong refining margins,” he said.

Oil product demand globally is estimated to have grown at about 1.6 million barrels per day, resulting in high refinery runs across all regions.

“Our petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain,” he said.

Going forward, RIL is committed to accelerating the growth of operating EBITDA, he said.