Reliance Industries Ltd (RIL) announced a lower net profit of Rs.4,236 crore for the quarter ended March 31, 2012, a drop of 21.2 per cent, as compared to Rs.5,376 crore recorded in the same period in the previous year, owing to lower gas output from its oilfields and lower refining margins.
The company announced a dividend of Rs.8.5 per share for 2011-12.
During the quarter, a company release said, oil and gas exploration business revenues were down 36.5 per cent at Rs.2,608 crore (Rs.4,104 crore) with lower operating margin of 36.5 per cent (38.2 per cent). Its refining business and gross refining margin (GRM) was lower at $7.6/barrel ($ 9.2/barrel).
Even though the turnover for the fourth quarter of the last fiscal rose 16.7 per cent to Rs.87,833 crore (Rs.75, 283 crore), its operating profit dipped 17.7 per cent to Rs.8,859 crore (Rs.10,760) and the profit before tax by 18.6 per cent to Rs.5,432 crore (Rs.6,677 crore). Owing to the lower net profit, earnings per share (EPS) fell 21.3 per cent to Rs.12.9 (Rs.16.4).
In a statement, Mukesh D. Ambani, Chairman & Managing Director, said, “Our businesses have delivered industry-leading performances. This is a reflection of the quality of our assets and growing demand for our products and services in India and internationally. We have created a strong foundation for future growth and are investing in our core upstream and petrochemical businesses in India.”
For the fiscal 2011-12, RIL reported a drop of 1.2 per cent in net profit at Rs.20,040 crore (Rs.20,286 crore) on a 31.4 per cent higher turnover of Rs.3.39 lakh crore (Rs.2.58 lakh crore).
Refinery accounted for 36.8 per cent increase, petrochemicals 27.7 per cent while oil and gas revenues declined by 25.2 per cent. While higher prices accounted for 29.2 per cent growth in revenue, higher volumes accounted for the balance 2.2 per cent. Exports grew 41.8 per cent to Rs.2.08 lakh crore (Rs.1.46 lakh crore).
Crude oil production from the company's main oilfield KG-D6 fell 37.9 per cent to 4.94 million barrels while natural gas output was lower by 23.5 per cent at 551.31 billion cubic feet (bcf).
Operating profit rose 3.3 per cent to Rs.39,812 crore (Rs.41,178 crore) and profit after tax by 2 per cent to Rs.25,750 crore (Rs.25,242 crore). In line with the profit dip, EPS saw a commensurate drop of 1.3 per cent to Rs.61.2 (Rs.62) while GRM was $8.6/bbl ($8.4/bbl).
Reliance operates more than 1,300 stores through Reliance Retail and it will be rolling out more stores in the current year. “Response to our organised retail business has been encouraging and we continue to expand our footprint by building more stores across verticals, formats and geographies,” Mr. Ambani said in the statement.
Keywords: Reliance Industries Ltd