The Hindu Business Line : Reliance Ind Q1 net rises 28%

Mumbai, July 28 Reliance Industries said its first quarter net profit rose 28.2 per cent, led by a record high gross crude refining margin of $15.4 a barrel, up from$12.4 per barrel a year ago.

Net profit for the quarter touched Rs 3,264 crore compared withRs 2,547 crore for the same the year-ago quarter.

The company attributed its higher margins to the complex configuration of its refinery, which can process both heavy and sour crude. The company was thus able to process four new crudes procured at a substantial discount and this, along with its logistical infrastructure that reduces freight costs, helped it boost realisations.

RIL’s gross turnover grew 12.7 per cent, at Rs 29,493 (Rs 26,166 crore), with price increase accounting for 3 per cent growth and volumes increase 10 per cent.

Exports were higher by 30 per cent, at Rs 17,263 crore.

EBITDA was 23 per cent higher, at Rs 5,282 crore (Rs 4,281 crore). The net operating margin for the quarter was 18.5 per cent (17.3 per cent). Total expenditure rose to Rs 22,879 crore (Rs 20,285 crore).

Raw material costs rose 10 per cent, to Rs 19,999 crore and employee costs 17 per cent, to Rs 371 crore.

Other expenditure decreased by 20 per cent to Rs 1,953 crore on account of a lower incidence of sales tax as exports rose.

The company’s largest business, refining and marketing, reported a 9.3 per cent increase in revenues (Rs 22,794 crore) and a 25.7 per cent increase in earnings before interest and tax (EBIT).

Its EBIT margin was 11.2 per cent, against 9.8 per cent a year earlier. Exports accounted for 62.9 per cent of production volumes.

Exports of refined products stood at 5.04 million tonnes (3.19 million tonnes).

RIL refineries processed 8.01 million tonnes of crude, at a utilisation rate of 97 per cent in the backdrop of a strong demand for transportation products and the global shortage of refining capacity, said a statement from the company.

Domestic marketing margins from retailing continued to be under pressure, it said.

The company cited lack of a level playing among private sector and public sector oil companies (which get subsidies and can price their products more competitively).

The petrochemicals segment reported a revenue increase of 10.8 per cent, as prices increased 3 per cent and volumes 8 per cent. EBIT increase in this segment was 36.2 per cent. the EBIT margin stood at 13.7 per cent against 11.1 per cent.

This was due to both higher naphtha prices and the fact that RIL was able to pass on the increase in polyester and polymer margins, made possible by strong demand from the end user segment, said the statement.

RIL shares had declined by 3.84 per cent on Friday on BSE, closing at Rs. 1,866.45

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