RIL Q1 net jumps 32 pc to Rs 4,851 crore

RIL Q1 net jumps 32 pc to Rs 4,851 crore

It had a net profit of Rs 3,666 crore in the same quarter previous fiscal.

During the quarter under review, the Mukesh Ambani group’s flagship company’s total income increased to Rs 61,007 crore in June 2010 quarter versus Rs 32,441 crore in same quarter last year.

Even as RIL claims the quarterly revenue as well as net profit registered is highest ever, the notes accompanying the financial results clarified that the figures for corresponding period have been restated, wherever necessary, to make them comparable consequent to merger of Reliance Petroleum (RPL). This company was engaged in setting up of an integrated crude oil refinery facilities along with ancillary units in a Special Economic Zone.

Chairman & Managing Director Mukesh Ambani said: “We had yet another record quarter due to high operating rates and improving margins across all our businesses. Reliance embarked on two major initiatives to create incremental value. We entered into joint ventures in shale gas to internationalise and diversify our upstream portfolio. …also committed itself to participate in the high growth and exciting area of broadband wireless. Both these initiatives are in line with the strategy to identify and invest in new, value creating businesses.”

Refining margin

The company’s gross refining margin (GRM) for June quarter stood at $7.3 a barrel marginally lower than $7.5 a barrel registered a year earlier, while refining revenues increased 106 per cent to Rs 50,531 crore from Rs 24,434 crore and petrochemical revenues increased 19 per cent to Rs 13,903 crore from Rs 11,707 crore (Year-on-Year basis).  It was also a healthy quarter for the company in terms of exports as they went up 103 per cent at Rs 32,849 crore.  Exports of refined products were US$ 6.3 billion as against US$ 2.8 billion during the corresponding period of the previous year. This accounted for about 9.5 million tonnes of product as against 5.2 million tonnes during the corresponding period of the previous year due to increased export volumes from SEZ refinery.

RIL said its strong financial growth was supported by rise in volumes as well as prices, while its exports more than doubled to Rs 32,849 crore, from Rs 16,145 crore. The company’s total expenditure also nearly doubled in the quarter to Rs 52,371 crore, from Rs 26,681 crore. Staff cost rose to Rs 617 crore from Rs 557 crore.