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RIL firms up after Q2 results

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Capital Market
Last Updated : Oct 15 2013 | 11:55 PM IST

Reliance Industries rose 1.92% to Rs 887 at 9:16 IST on BSE after net profit rose 1.5% to Rs 5490 crore on 14.2% growth in turnover to a record Rs 106523 crore in Q2 September 2013 over Q2 September 2012.

The result was announced after trading hours on Monday, 14 October 2013.

Meanwhile, the BSE Sensex was up 117.63 points, or 0.57%, to 20,725.17.

On BSE, 55,000 shares were traded in the counter compared with average volume of 4.22 lakh shares in the past one quarter.

The stock hit a high of Rs 899 and a low of Rs 883 so far during the day. The stock hit a 52-week high of Rs 954.80 on 21 January 2013. The stock hit a 52-week low of Rs 761 on 21 November 2012.

The stock had underperformed the market over the past one month till 14 October 2013, sliding 0.34% compared with the Sensex's 4.43% rise. The scrip had also underperformed the market in past one quarter, falling 2.18% as against Sensex's 3.25% rise.

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The large-cap company has an equity capital of Rs 3230.87 crore. Face value per share is Rs 10.

Reliance Industries' (RIL) net profit rose 2.6% on 17.6% growth in turnover in Q2 September 2013 over Q1 June 2013.

RIL's gross refining margin (GRM) declined to $7.7 per barrel in Q2 September 2013, from $8.4 a barrel in Q1 June 2013 and $9.5 a barrel in Q2 September 2012. RIL said that the company's refining business performance during the quarter was positively impacted by increased crude throughput, stable middle distillate and naphtha cracks, and favourable exchange rate movement. This was partly offset by weak gasoline and solid products (pet-coke/sulphur) cracks, widening Brent-Dubai differential and lower domestic sales on weak demand.

The company said that its petrochemicals business performance during the quarter was positively impacted by higher volumes, stable demand, improved deltas for key polymers (PP/PE) and fibre intermediates (PX/MEG), and favourable exchange rate movement. Though polyester margins were weak, RIL benefited due to integrated chain economics.

RIL's outstanding debt as on 30 September 2013 was Rs 83982 crore, higher than Rs 72427 crore as on 31 March 2013. RIL had cash and cash equivalents of Rs 90540 crore as on 30 September 2013. These were in bank deposits, mutual funds, CDs and Government securities/bonds. RIL was debt free on a net basis as on 30 September 2013.

The net addition to fixed assets for the half year ended 30 September 2013 was Rs 20154 crore, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said in a statement.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "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. Optimal utilization of best-in-class refinery assets and inherent flexibility in sourcing, product delivery contributed to healthy operating profits from our refining business. Retail business continues to break new ground, growing 41% in 1H FY14. Reliance's ongoing counter-cyclical investments will strengthen our competitive position in each business segment."

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.

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First Published: Oct 15 2013 | 9:17 AM IST

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