RIL Q3 net surges 24% to Rs 5,502 cr

RIL Q3 net surges 24% to Rs 5,502 cr

To invest Rs 1 lakh cr in petrochem biz

RIL Q3 net surges 24% to Rs 5,502 cr

Mukesh Ambani Group's flagship company Reliance Industries (RIL) on Friday reported 23.9 per cent rise in the net profit for the third quarter of fiscal ’13 to Rs 5,502 crore as against Rs 4,440 crore in the comparable quarter last fiscal.

During the quarter under review, RIL's turnover grew to Rs 96,307 crore, which is an increase of 10.1 per cent from Rs 87,480 crore in the same quarter of financial year 2012.  With this, RIL has stunned investors and D-Street with better-than-expected numbers and attributed the improved performance to higher gross refining margins (GRMs) and also good show from its petro-chemicals segment.

Commenting on the results, RIL Chairman Mukesh Ambani said, “The company's performance has improved in this quarter with margin expansion in petrochemicals and record earnings in the refining business. We are investing over Rs 1,00,000 crore by expanding our petrochemical capacities and adding value to our refining business."
He added, “These investments will secure a significant change in RIL's earning capacity on commissioning of these projects."

Other expenditure increased by 31.1 per cent from Rs 13,106 crore to Rs 17,178 crore due to higher power & fuel expenses (imported LNG), higher selling expenses (higher exports) and higher chemicals and stores consumption.

Dwelling on other highlights, the company said it logged record refining EBIT (Earnings before interest and taxation) of Rs 3,615 crore, up 115 percent on a year-on-year (YoY) basis and 3 percent on quarter-on-quarter (QoQ) basis.

On a YoY basis, sharp increase was witnessed in refining margins at $ 9.6 per barrel versus $ 6.8 per barrel in Q3 FY’12, while for 9 months FY’13 period GRM was flat on YoY basis at $9.0 per barrel.

Further, RIL Group said that Reliance Retail achieved a record turnover of Rs 7,749 crore, an increase of 44 per cent on a YoY basis, with over 1400 stores operational in 129 cities in the country.

Meanwhile, RIL is a debt-free company on a net basis and retains its investment grade ratings. It also completed its largest share buy-back of over 46.2 million shares for an aggregate amount of Rs 3,361 crore.