Mumbai, Oct 13 (IANS) Mukesh Ambani-led Reliance Industries (RIL) on Friday posted a 7.3 per cent rise in standalone net profit for the second quarter ended September at Rs 8,265 crore on the back of improved performance of its petrochemicals and refining business.
Standalone revenue during the quarter in consideration at Rs 75,165 crore crore jumped 16.8 per cent over the revenue in the corresponding period of the previous year, RIL said in a release here.
“Increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses,” the statement said.
Revenue from the refining and marketing segment during the July-September quarter at Rs 69,766 crore increased 15.3 per cent over the same quarter last year. Earnings before interest and taxes (EBIT) in the segment increased by 10.8 per cent year on year to Rs 6,621 crore “aided by higher volumes and strong transportation fuel cracks”, RIL said.
RIL achieved a gross refining margin (GRM) of $12 on converting each barrel of crude to products during the quarter, as against a GRM of $10.l per barrel in the second quarter a year ago.
“We have had record segment EBIT in both refining and petrochemicals owing to better volumes and prices. GRM in the quarter at $12 per barrel is at a 9-year high,” said RIL Chief Financial Officer Alok Agarwal.
“In the petrochem segment, EBIT margins during the quarter expanded to 17.7 per cent, highest in the last ten years,” he said.
Petrochemicals segment EBIT was at a record level of Rs 4,960 crore “supported by strong volume growth, higher margins and improved product mix with ethane cracking stabilizing” at the company’s facilities at Dahej and Hazira, RIL said.
During the second quarter, revenue from the petrochemicals segment increased by 24.9 per cent year-on-year to Rs 27,999 crore due to higher volumes in the polyester chain and firm prices.
“Exports from the refining and petrochemical operations during the second quarter at Rs 41,560 crore were higher by 10.2 per cent, as against Rs 37,717 crore exported in the same quarter of last year, due to higher volumes and product prices,” the company said.
On the oil and gas business, Agarwal said EBIT in the quarter in question at Rs 272 crore was lower than the Rs 491 crore earned in the like period of the previous year.
“The segment performance continue to remain impacted by declining volume and weak prices,” the statement said.
Revenue from exploration and production in the quarter, at Rs 1,503 crore, increased by 13.3 per cent over the same quarter last year due to RIL starting coal bed methane (CBM) production, the company said.
With results being declared after market hours, the RIL stock closed on Friday at Rs 876.70 a share, up Rs 4.20, or by 0.48 per cent, over its previous close on the BSE.