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Reliance Industries Ltd (RIL) on Tuesday exceeded market expectations by reporting a 32 per cent jump in net profit for the quarter ended March 2013, compared with the year-ago period, helped by an increase in refining margin.
The company’s net profit in the quarter rose to Rs 5,589 crore from Rs 4,236 crore. On a sequential basis, however, it saw a near-flat growth. For the full financial year, RIL’s net profit went up 4.8 per cent to Rs 21,003 crore and revenue 9.2 per cent to Rs 3,71,119 crore.
Over the quarters, a sharp decline in production from its flagship Krishna-Godavari basin, off the Andhra coast, has changed the business mix for the Mukesh Ambani-controlled company, with refining and marketing now accounting for 55 per cent of the revenue base. This was 40 per cent in 2011-12.
Backed by improved diesel and petrol margins, the company’s gross refining margins (GRM) rose to $10.1 a barrel, from $7.6 in the corresponding quarter the previous year. But, compared to the December quarter, the GRM was flat.
“RIL’s operational performance has improved and the company has posted good refining margin. Retail business is also coming up well. If the government clarifies on gas pricing, as promised in the Budget, RIL can perform better,” said Jagannadham Thunuguntla, head of research, SMC Global.
Ahead of the results, the company’s stock rose over 1.38 per cent on Tuesday to close at Rs 804.50 on BSE. RIL’s global depository receipts in London rose as much as 4.2 per cent intra-day — the highest since March 18 — before closing at $29.60, up 2.1 per cent.
The company’s revenues for the fourth quarter were marginally down to Rs 86,618 crore, from Rs 87,833 in the quarter last year. The revenue from its exploration and production segment was down 38.8 per cent to Rs 1,597 crore from Rs 2,608 crore in the same quarter a year ago.
While natural gas production from the KG-D6 block was down 39 per cent, RIL’s crude oil production was down 41 per cent on a year-on-year basis. Revenue from its petrochemical business was marginally up, by 3.5 per cent to Rs 22,158 crore, against Rs 21,412 crore in the quarter a year ago. The firm had cash and equivalents of Rs 82,975 crore and was debt-free on a net basis as on March 31.
The company’s net profit in the quarter rose to Rs 5,589 crore from Rs 4,236 crore. On a sequential basis, however, it saw a near-flat growth. For the full financial year, RIL’s net profit went up 4.8 per cent to Rs 21,003 crore and revenue 9.2 per cent to Rs 3,71,119 crore.
Over the quarters, a sharp decline in production from its flagship Krishna-Godavari basin, off the Andhra coast, has changed the business mix for the Mukesh Ambani-controlled company, with refining and marketing now accounting for 55 per cent of the revenue base. This was 40 per cent in 2011-12.
Backed by improved diesel and petrol margins, the company’s gross refining margins (GRM) rose to $10.1 a barrel, from $7.6 in the corresponding quarter the previous year. But, compared to the December quarter, the GRM was flat.
“RIL’s operational performance has improved and the company has posted good refining margin. Retail business is also coming up well. If the government clarifies on gas pricing, as promised in the Budget, RIL can perform better,” said Jagannadham Thunuguntla, head of research, SMC Global.
Ahead of the results, the company’s stock rose over 1.38 per cent on Tuesday to close at Rs 804.50 on BSE. RIL’s global depository receipts in London rose as much as 4.2 per cent intra-day — the highest since March 18 — before closing at $29.60, up 2.1 per cent.
The company’s revenues for the fourth quarter were marginally down to Rs 86,618 crore, from Rs 87,833 in the quarter last year. The revenue from its exploration and production segment was down 38.8 per cent to Rs 1,597 crore from Rs 2,608 crore in the same quarter a year ago.
While natural gas production from the KG-D6 block was down 39 per cent, RIL’s crude oil production was down 41 per cent on a year-on-year basis. Revenue from its petrochemical business was marginally up, by 3.5 per cent to Rs 22,158 crore, against Rs 21,412 crore in the quarter a year ago. The firm had cash and equivalents of Rs 82,975 crore and was debt-free on a net basis as on March 31.
