RIL Q1 net profit plunges 11.53% to Rs 3,636 crore

The companys gross refining margin declines to $7.5 billion per barrel

Its total Income has plunged by 21.64 per cent to Rs 32,757 crore for the quarter ended June 30, 2009 compared to Rs 41,805 crore for the quarter ended June 30, 2008. 

RIL Chairman and Managing Director Mukesh Ambani said, “timely completion with safe and stable start up of the new SEZ refinery and the deep-water, oil and gas KG D6 block are noteworthy accomplishments. These projects will not only play a significant role in shaping the future growth at RIL but more importantly will help change the energy landscape of India and the industry globally.” Operating profit stood at Rs 4,293 crore, while standalone Petchem revenues declined 22.4 per cent to Rs 11,540 crore versus Rs 14,871 crore. 

During the quarter under review, depreciation was higher by 41.4 per cent at Rs. 1,628 crore (US$ 340 million) against Rs 1,151 crore in the corresponding period of the previous year primarily on account of higher depreciation in Oil & Gas business segment.Interest cost was higher at Rs 345 crore (US$ 72 million) as against Rs 294 crore, while interest capitalised, during the period, was lower at Rs 330 crore (US$ 69 million) as against Rs 484 crore in the corresponding period of the previous year.  EPS (earning per share) declined to Rs 23.10 as against Rs 28.30.

Outstanding debt
Its outstanding debt as on June 30, 2009 was Rs 51,780 crore (US$10.8 billion) compared to Rs 53,457 crore as on March 31, 2009, while net gearing improved to 19.5 per cent from 19.2 per cent during the period.

Refining revenues of RIL slipped 22.73 per cent to Rs 25,180 crore as against Rs 32,587 crore in the comparable quarter.  RIL reported gross refining margin (GRM) at $7.50 a barrel as against $15.7 a barrel, while Dalal Street had expectations of around $8.5 a barrel. During the period, petrochemical margins showed recovery from the the fourth quarter of the fiscal 2008-09 levels.