RIL pips expectations, net profit zooms 58%

Income up 44.5%; gross refining margin 3 times Singapore benchmark.

Reliance Industries (RIL) today beat the Street with 57.6 per cent growth in net profit for the third quarter in this financial year, led by 48 per cent growth in petrochemicals and 37 per cent growth in refining businesses.

Gross refining margin at $11.7 a barrel was nearly three times the regional Singapore benchmark.

Net profit for the quarter was Rs 2,799 crore compared with Rs 1,776 crore in the previous corresponding period. Total income grew 44.5 per cent to Rs 26,514 crore over the same period last year and operating profit went up 50.5 per cent to Rs 4,751 crore. Earnings per share went up to Rs 20.1 from Rs 12.7 in the corresponding quarter last year.

In a statement, group Chairman Mukesh Ambani said: "It has been an excellent quarter for Reliance Industries. Our integrated and globally competitive business portfolio continues to help Reliance Industries de-risk its business model and deliver superior operating performance."

Analysts had predicted a third-quarter year-on-year growth in net profit for the company between 15 and 27 per cent. Numbers put out by different analysts and stockbroking houses predicted net profit of Rs 2,250 crore to Rs 2,350 crore while net sales could range from Rs 26,542 crore to Rs 27,241 crore.

The stock opened at Rs 1,349 and closed at Rs 1,367 on the Bombay Stock Exchange, after touching a high of Rs 1,383.50.

Revenues in the refining segment went up by 37 per cent to Rs 20,870 crore from Rs 15,179 crore in the corresponding period last year. Crude throughput volumes for the current quarter was 7.9 million tonnes (MT) compared with 6.7 MT in the same quarter last year.

The petrochemicals business saw growth of 48 per cent "" from Rs 7,353 crore in the third quarter last year to Rs 10,895 crore in the same quarter this year. This was in keeping with market predictions. 
 

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Analysts at Merrill Lynch predicted growth of over 10 per cent, driven by capacity additions made in the second half of last year and the first half of this year.

Motilal Oswal's analysts said the petrochemical business would be the key driver for earnings with polymer spreads moving up 17-30 per cent year-on-year, while integrated polyester margins were expected to be up 5-14 per cent.