RIL Q2 net up 16 %

Reliance Industries Limited chairman Mukesh Ambani.  

Reliance Industries (RIL) on Saturday reported nearly 16 per cent rise in net profit for the second quarter this fiscal as higher earnings from oil refining and petrochemicals business helped it offset a dip in natural gas production.

The net profit was up 15.8 per cent at Rs. 5,703 crore during July-September — RIL's highest quarterly profit since 2007, the company said in a press statement.

RIL said its showpiece Krishna Godavari basin D6 gas fields have seen a sharp drop in production “mainly due to reservoir complexity“.

The drop led to revenue from oil and gas exploration business fall 17.2 per cent to Rs. 3,563 crore and pre-tax segment profit by 10.2 per cent to Rs. 1,531 crore.

But this was more than made up by good performance by its twin adjacent refineries at Jamnagar in Gujarat with a combined capacity of 1.24 million barrels a day. RIL said it earned $10.1 on turning every barrel of crude oil into fuel in the quarter as compared to $7.9 gross refining margin (GRM) a year ago. Higher volumes and prices helped the firm's petrochemical business post a 10.2 per cent rise in pre-tax profit to Rs 2,422 crore.

Even though the company had received at least two instalments, of the $7.2 billion it is getting from UK's BP Plc for selling 30 per cent interest in 23 oil and gas blocks including the prime KG-D6, its debt has risen. RIL had an outstanding debt of Rs. 71,399 crore on September 30 compared to Rs. 67,397 crore as on March 31, 2011. It was expected that the company would use the proceeds from BP to pre-pay its debt and reduce its interest outgo. It had cash of Rs. 61,490 crore ($12.6 billion), up from Rs. 45,775 crore as on June 30, 2011.

RIL Chairman and Managing Director Mukesh D. Ambani said the increase in profits was largely driven by improved performance in the refining and petrochemicals business. The turnover was up 34.7 per cent to Rs. 80,790 crore. Increase in volumes accounted for 3.5 per cent growth in revenue and higher prices accounted for 32.5 per cent growth in revenue. Exports were higher by 52.2 per cent at Rs. 101,872 crore as against Rs. 66,936 crore in first half of 2010-11.

Hi-speed broadband

Reliance Industries is in the process of finalising agreements with global technology players and service providers to offer high speed broadband wireless services in the country, the company said on Saturday. It is in the process of setting up a world class broadband wireless network using state-of-art technologies and finalising the arrangement with leading global technology players, service providers and infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India.

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Printable version | Jun 24, 2021 12:53:22 PM |

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