Reliance Industries Q3 net profit spurts 28% to Rs 5,136 crore

Reliance Industries Q3 net profit spurts 28% to Rs 5,136 crore

Mukesh Ambani

The Mukesh Ambani Group’s flagship company reported a total income of Rs 60,530 crore in Q3, which was an increase of 5.51 per cent over Q3, the previous year.

Robust demand

Commenting on the results, RIL Chairman & Managing Director Mukesh Ambani said: “...another record quarter as both refining and petrochemical margins continued to improve... Robust demand growth in home markets and highly competitive assets enabled RIL to have industry leading operating rates and margins.”

The company’s cash profit for the quarter stood at Rs 8695 crore and other income for the quarter stood at Rs 741 crore.

RIL’s gross refining margins (GRM) during the quarter rose to $9 per barrel compared with $5.90 a barrel in the same quarter last year, while it was $7.9 bbl for the quarter ended September 2010.

 “GRM premium over Singapore complex margin widened primarily due to efficient global sourcing of crude and higher light-heavy differential,” the company said.

Segmenting the company’s revenue, RIL’s petrochem revenue was at Rs 15,960 crore versus Rs 14,760 crore, while its oil & gas revenue was up at Rs 4,178 crore versus Rs 3,530 crore, Y-o-Y.  

For nine-months ended December 31, 2010, RIL posted a net profit of Rs 14,910 crore compared to Rs 11,526 crore in the corresponding period of fiscal 2010, an increase of 29.4 per cent.

During this period, the company’s turnover grew to Rs 183,368 crore versus Rs 140,133 crore during 9-month period ended December 31, 2009, a jump of 30.9 per cent.  

Notes accompanying the results pointed out that RIL had revalued plants and buildings at Patalganga, Hazira, Jamnagar, Gandhar and Nagothane in earlier years in earlier years due to which there is an additional charge for depreciation of Rs 1,984 crore for the nine months ended December 31, 2010, which has been withdrawn from the reserves.

 However, the company said, this has no impact on the profit for the nine-months period of the current fiscal.