Reliance Industries on Friday reported a 4.4% increase in net profit for the April-June quarter of this fiscal at Rs 6,222 crore against Rs 5,957 crore in the April-June quarter of last fiscal. A Bloomberg poll of analysts had expected RIL to post a 5-6% increase in its first quarter at Rs 6,211 crore. Sales declined to Rs 77,130 crore, down 23%. RIL reported sales at Rs 104,640 crore during the first quarter of last fiscal.
“Our financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment. The sharp increase in demand for transportation fuels helped us realize strong refining margins,” said Mukesh Ambani, Chariman and Managing Director, RIL.
“Our petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain. In our retail business, we have reached significant milestones over the past couple of years and continue the high growth trajectory for this business,” he added.
Gross refining margins -- earning from turning every barrel of crude oil into fuel -- hit a six-year high of $10.4 per barrel against $8.7/bbl reported in the first quarter of last fiscal and $10.1/bbl in the quarter ended March 2015. Analysts had expected the gross refining margins (GRMs) to come in between $9.3-9.5 per barrel.
Strong gasoline cracks and discount offerings by Middle East producers could have resulted in RIL beating analyst’s expectation on the GRM front.
Operating profit before other income and depreciation increased by 13.2% on a Y-o-Y basis from Rs 8,989 crore to Rs 10,177 crore with higher contribution from refining and petrochemicals business.
Earnings per share (EPS) jumped 4.3% to Rs 21.1 from Rs 20.3 on an annual basis.
RIL shares on the BSE closed 1.97% lower on Friday at Rs 1025.05.
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