Reliance Industries Ltd. (RIL), for the second quarter ended September 30, 2013, has reported an almost flat 1.5 per cent growth in net profit at Rs. 5,490 crore. The company had reported a net profit of Rs. 5,409 crore in the same period last year.
For the six months ended September 30, 2013, the company’s net profit increased by 9.4 per cent to Rs. 10,842 crore.
For the first time, the company’s sales turnover for the second quarter crossed the one trillion mark. Revenue grew 14.2 per cent to Rs. 1,06,523 crore as compared to Rs. 93,266 crore in the same period last year.
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“RIL’s first-half performance reflects the resilience of our business model in a period of volatility and uncertainty. Our diversified and integrated petrochemicals business captured margins across segments, delivering near-record profit levels even as the domestic economy slowed,” Mukesh Ambani, Chairman & Managing Director, RIL, said in a statement.
“Optimal utilisation of best-in-class refinery assets, and inherent flexibility in sourcing, product delivery contributed to healthy operating profit from our refining business. Retail business continues to break new ground, growing 41 per cent in the first-half. Reliance’s ongoing counter-cyclical investments will strengthen our competitive position in each business segment,” Mr. Ambani added.
During the quarter, the company’s petrochemicals business showed clear improvement in margins. The earnings in the exploration and production business were flat due to the exchange rate. The 11 per cent depreciation of the rupee had its impact, the company said.
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As public sector oil companies reduced their off-take from RIL during the quarter, the company increased exports to Asia and Middle East countries.
During the first-half, the KG-D6 field produced 1.0 million barrels of crude oil, 0.13 million barrels of condensate and 94.6BCF of natural gas, a reduction of 41 per cent, 50 per cent and 52 per cent respectively on a year-on-year basis.
“Fall in production is mainly attributed to geological complexity and natural decline in the fields,” the company said.
A top official said that the company would not make any new investment in the KG fields without seeing clarity on pricing.