Reliance Industries Q2 net dips 6.42% to Rs 3,852 crore

During the quarter under review, RIL’s total income rose 5.88 per cent to Rs 47,476 crore as against Rs 44,839 crore for quarter ended September 30, 2008.
RIL Chairman Mukesh Ambani said “the timely completion of new SEZ refinery and deep water, oil and gas K-G D6 block and their ramp-up have contributed in RIL achieving a record level of profits despite the challenging business and economic environment.” RIL’s refining margin during the quarter under review more than halved to $6.0/bbl from $13.3/bbl in second quarter of fiscal year 2009.

 The company, in its notes pointed out various reasons for declining figures: RIL had revalued plant, equipment and buildings at most of its locations and consequently, it had to incur additonal charge for depreciation at Rs 1,494 crore, plus exceptional item of Rs 370 crore appeared in audited results of fourth quarter 2009 which represented liabilities on account of corporate guarantees issued on behalf of a subsidiary.

Tax provision
That apart, provision for current tax for half year ended September this fiscal included fringe benefit tax of Rs 33 crore.  Also, as these are standalone results of RIL, it does not include profit of Rs 2,941 crore from (treasury stock) sale of 1.50 crore equity shares of RIL by Petroleum Trust.
The company’s revenue from refining business grew nearly 9 per cent to Rs 39,564 crore, while income from petrochemical business stood at Rs 13,340 crore, down by 14.20 per cent.

Revenues from oil and gas segment, which includes exploration, development and production, more than tripled to Rs 2,937 crore during the period under review, while expenditure on its employees stood at Rs 596 crore in the reviewed quarter, against Rs 605 crore in the corresponding period a year ago. RIL pointed out that its turnover declined by 8.7 per cent to Rs 81,284 crore and exports decreased by 26 per cent to Rs 43,035 crore.  During first half of fiscal year 2010, the company’s cash profit increased by 7.3 per cent to Rs 12,425 crore, while net profit decreased by 8.5 per cent to Rs 7,518 crore and gross refining margin down to $6.3/bbl versus $14.4/bbl in fiscal