Reliance Industries Ltd. (RIL) reported a 5.7 per cent fall in net profit at Rs.5,376 crore for the second quarter ended September 30, 2012, against Rs.5,703 crore during the corresponding period of the previous year.
The turnover went up by 15.4 per cent to Rs.93,265 crore from Rs.80,790 crore.
For the half-year ended September 30, 2012, the net profit declined by 13.3 per cent to Rs.9,849 crore from Rs.11,364 crore in the year-ago period. However, the turnover was up by 14.4 per cent at Rs.188,191 crore against Rs.164, 479 crore.
“RIL’s business and financial performance for the first-half of 2012-13 has been satisfactory despite weakness in global economies and the resultant margin environment,” said Mukesh D. Ambani, Chairman and Managing Director.
“RIL’s facilities continued to deliver operating excellence, and this is a true testimony of the quality of our manufacturing assets and human talent. On a sequential basis, the net profit for the quarter was up 20 per cent at $1 billion,” Mr. Ambani said.
“Despite current weakness in global economies, we continue to invest in our long-term growth projects to deliver sustainable value to all our stakeholders,” he added.
Discounting the decline in year-on-year profit, market analysts expressed optimism about the company and said that the company had done better as compared to the first quarter.
“The result is on expected lines. It (the decline) has not changed the potential of the company. The improved revenue from shale gas and likely roll out of the telecom business is a good indicator. We hope the retail business will contribute a lot going forward,” said KR Choksey, Managing Director, KR Choksey Share & Securities.
“The results are in line. RIL’s gross refining margin is much better than that of Singapore. Without much other income, the net profit has gone up as compared to the sequential quarter,” said Kishor Ostwal, CMD, CNI Research.
In the first-half, cumulative production from the KG-D6 block was 1.7 million barrels of crude oil and 197 BCF (billion cubic feet) of natural gas which was a reduction of 37 per cent and 35.1 per cent, respectively.
“This reduction was due to reservoir complexity and natural decline.
“Production of gas condensate was 0.3 million barrels, reduction of 25 per cent over the previous period,” RIL said.
In refining business, the company processed 34.9 million tonnes of crude oil achieving a utilisation of 112 per cent. RIL’s gross refining margin (GRM) for the first-half was $8.5 /bbl.
On a year-on-year basis, petrochemical revenue increased by 11.3 per cent to Rs.43,897 crore.
Reliance Retail witnessed 48 per cent growth in turnover at Rs.4,910 crore as compared to the same period last year.