RIL reports marginal growth in Q2 net

Reliance Industries Ltd. (RIL), despite 4.3 per cent drop in turnover, has reported a marginal 1.7 per cent growth in consolidated net profit at Rs.5,972 crore for the quarter ended September 30, 2014, as compared to Rs.5,873 crore in the same period last year. The company’s consolidated turnover was at Rs.1.13 lakh crore as compared to Rs.1.18 lakh crore in the same period last year, primarily due to fall in crude prices.

While the company’s exploration and production businesses remained under pressure, better performance of the refining and petrochemicals businesses helped RIL report a record net profit during the quarter.

“RIL’s financial performance for the period stands testimony to the intrinsic strength of our integrated business operations. The refining and petrochemical businesses, once again, delivered robust results, outperforming regional industry benchmarks,” RIL Chairman and Managing Director Mukesh D. Ambani said in a statement.

Large investment programme “Renewed optimism in the domestic economy augurs well for business and consumer confidence, particularly against the backdrop of continuing concerns on global economic growth. We expect to create significant value for our stakeholders over the next 12-18 months as we complete our large investment programme across energy and consumer businesses. These projects will propel the next phase of growth for India and Reliance,” Mr. Ambani said.

RIL’s gross refining margins (GRM) for the quarter stood at $8.3 a barrel as compared to $7.7 a barrel in the same period last year. In the petrochemicals business, cracking margins were at three-year high as the feedstock costs were lower. RIL’s organised retail business did well, and the company added 283 new stores. Revenue from this business grew 20 per cent to Rs.4,167 crore.

The company was planning to make a foray into e-commerce in a big way as part of its retail strategy, company officials said, adding that Reliance Jio broadband services would be launched before the middle of next year.

In the past six months, RIL had made capital expenditure of Rs.45,000 crore, and would spend another Rs.55,000 crore in the second half, he said.