RIL reports 4th straight drop in quarterly Net at Rs 5,376 cr

Reliance Industries (RIL) on Monday reported 5.7 per cent drop in net profit to Rs 5,376 crore for the quarter ended September 30, 2012 from Rs 5,703 crore in the comparable quarter of the previous fiscal.

Net sales during Q2 touched Rs 90,335 crore, an increase of 14.97 per cent from Rs 78,569 crore a year earlier.

Operating profit before other income and depreciation fell 26.9 per cent from Rs 19,770 crore to Rs 14,452 crore, while net operating margin was lower at 7.7 per cent from 12 per cent in the corresponding period of the previous year due to the base effect. Gross turnover of the company stood at Rs 1,08,358 crore for the second quarter this fiscal, as against Rs 93,235 crore a year earlier, an increase of 16.22 per cent. 

With this, the Mukesh Ambani Group's flagship company has posted its fourth consecutive drop in quarterly profit. Nevertheless, it met D-Street estimates of about Rs 5,300 crore, as its gross refining margins rose sequentially to $9.5 per barrel during the quarter under review from $7.6 per barrel in Q1 of the current fiscal.

That apart, treasury gains from the company’s huge cash pile bolstered profits, while a 5 per cent depreciation of the rupee improved the bottomline for Q2. Sequentially, RIL reported 20 per cent jump in sequential net profit to Rs 5,376 crore in Q2 from Rs 4,473 crore in Q1 this fiscal.

RIL Chairman & Managing Director Mukesh Ambani said that the financial performance in the first half of fiscal 2013 has been satisfactory despite weakness in global economies and the resultant margin environment.

Further, Ambani explained: "Despite current weakness in global economies, we continue to invest in our long-term growth projects to deliver sustainable value to all our stakeholders”. Other income of the company increased 10.9 per cent quarter-on-quarter to Rs 2,112 crore.

Shale gas contributed $198 million to earnings before interest, tax, depreciation and amortisation (EBITDA) in the first half of fiscal 2013, according to an official RIL release.

The company pointed out that revenues from its retail division stood at Rs 4,910 crore for the first six months of the current fiscal. For the half-year ended September 30, 2012, RIL achieved gross revenues of Rs 1,88,191 crore, an increase of 14.4 per cent on a year-on-year (YoY) basis. Higher prices accounted for 15.2 per cent growth in revenue partly offset by decrease in volumes of 0.8 per cent. Exports were higher by 10.6 per cent at Rs 112,667 crore as against Rs 101,872 crore in the first half of fiscal 2012.

Higher crude oil prices resulted in consumption of raw materials rising 21.7 per cent to Rs 1,57,131 crore year-on-year. Employee costs rose to Rs 1,691 crore for the half year as against Rs 1,593 crore a year earlier, while other expenditure increased by 31.4 per cent from Rs 8,743 crore to Rs 11,490 crore due to higher power and fuel expenses and higher chemicals and stores consumption.