Mumbai, July 27 (IANS) The Mukesh Ambani-led Reliance Industries (RIL) on Friday reported 4.47 per cent rise in net profit at Rs 9,459 crore for the first quarter ending June on the back of robust growth in its petrochemical business backed by higher realisation in refining.
In a statement here, the energy conglomerate said it had registered a profit after tax (PAT) of Rs 9,108 crore in the same quarter last year.
RIL said that during the quarter in consideration, its consolidated revenue from operations at Rs 1,41,699 crore increased 56.5 per cent over the Rs 90,537 crore income in the corresponding period of 2017-18.
“Increase in revenue is primarily on account of higher realisations of refining and petrochemical products led by 49 per cent Y-o-Y increase in Brent oil price. Increased revenues also reflect higher volumes with start-up and stabilisation of petrochemicals projects,” it said.
The company’s operating profit, before other income and depreciation, increased, by 64.6 per cent to Rs 20,661 crore, from Rs 12,554 crore in the same period of the last fiscal.
“Record operating performance was led by 33 per cent volume growth and significant margin improvement in petrochemicals business,” the statement said.
The first quarter revenue from the refining and marketing business at Rs 95,646 crore rose 42.9 per cent over the same quarter last year.
However, earnings before interest and taxes (EBIT) in the refining segment in the quarter fell by 16.8 per cent from last year to Rs 5,315 crore owing to lower crude throughput due to planned turnaround of one crude distillation unit and softer refining margins, the company said.
Petrochemicals business revenue during the quarter in consideration increased by 58.2 per cent to Rs 40,287 crore due to a 35 per cent rise in volumes and around 24 per cent higher realisations.
“Petrochemicals segment EBIT was at a record level of Rs 7,857 crore supported by strong Y-o-Y volume growth led by successful stabilisation of the world’s largest ROGC (refinery off-gas cracker), its downstream units and PX-4,” the statement said.
Revenue from the oil and gas business in the April-June quarter increased 8.2 per cent over last year to Rs 1,432 crore primarily due to higher gas and oil price realisation.
“Segment EBIT at Rs 447 crore was impacted by lower volumes due to natural decline. On YoY basis, domestic production declined by 11.8 per cent to 17.9 Bcfe (billion cubic feet equivalent) and production in US shale operations declined by 26.6 percent to 28.7 Bcfe,” the statement added.
On a standalone basis, RIL’s refining, petrochemicals and oil and gas businesses recorded a net profit of Rs 8,820 crore in the first quarter, as compared to Rs 8,196 crore in the June quarter a year ago.
Commenting on the numbers, RIL Chairman Mukesh Ambani said in a statement: “Financial results of 1Q FY19 underscore the strength of the petrochemicals we have reinforced over the last investment cycle. Our petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins.”
With results coming in after market hours, the Reliance stock closed on Friday at Rs 1,129.60 a share, up Rs 19.25, or by 1.73 per cent on its previous close on the BSE.