Reliance Industries net up 4.4 percent but on lower turnover

Mumbai, July 24 (IANS) In line with analysts’ expectations, Reliance Industries on Friday said its consolidated net profit for the first quarter of this financial year was up 4.4 percent at Rs.6,222 crore (around $1 billion) from Rs.5,957 crore in the like quarter of last year.

On a stand-alone basis, where the entities held by the company are treated separately for accounting purposes and reflect more on the actual financial health of a parent company, the net profit for the period under review was up 11.8 percent at Rs.6,318 crore from Rs.5,649 in the year before.

But the company’s turnover on a consolidated basis, which includes the accounting numbers of subsidiaries held by the company, declined 23 percent to Rs.83,064 crore from Rs.107,905 crore during the periods under review, the company said in a regulatory filing with the exchanges.

“Our financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment,” chairman and managing director Mukesh Ambani said in a statement.

“The sharp increase in demand for transportation fuels helped us realize strong refining margins. Oil product demand globally is estimated to have grown at over 1.6 million units year-on-year, resulting in high refinery runs across all regions,” he said in the statement.

“Our petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain. In retail business, we have reached significant milestones over the past couple of years and continue the high growth trajectory.”

Ahead of the announcement of the results, which came afte the closing bell at stock exchanges, the shares of Reliance Industries ended lower at Rs.1,025.05, despite having touched Rs.1,050, intra-day.

The company attributed the decline in revenue to a 43.3 percent year-on-year decline in benchmark (Brent) oil price.

Exports from its Indian operations were also lower by 44.9 percent at Rs.36,717 crore, as against Rs.66,600 crore in the corresponding period of the previous year due to lower product prices in line with lower crude oil prices.

Highlights of the results (stand-alone):

• Revenue decreased by 28.1 percent to Rs.71,412 crore ($11.2 billion)

• Exports decreased by 44.9 percent to Rs.36,717 crore ($5.8 billion)

• Profits before income tax increased by 16.2 percent to Rs.11,125 crore ($1.7 billion)

• Profit before tax increased by 14.3 percent to Rs.8,263 crore ($ 1.3 billion)

• Cash Profit increased by 13.7 percent to Rs.8,806 crore ($1.4 billion)

• Net Profit increased by 11.8 percent to record Rs.6,318 crore ($1.0 billion)

• Gross Refining Margin of $10.4/bbl for the quarter, highest in past six years

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