Reliance Industries (RIL) is trading higher by over 1% at Rs 833 despite reporting a 5.73% year-on-year (yoy) dip in net profit at Rs 5,376 crore for the second quarter ended September 2012 due to the rise in material costs, other expenses and decline in exploration business. Analyst on a average expected net profit of Rs 5,323 crore for the quarter.
The country’s most valued company and energy major has reported a gross refining margin of $9.5 a barrel for the quarter, compared with $10.1 a year earlier. It had posted a refining margin of $7.6 a barrel in the June quarter.
Net sales, however, increased 14.97% to Rs 90,335 crore during the quarter, while in the year-ago quarter, it was Rs 78,569 crore. Other income almost doubled in the period to Rs 2,112 crore.
“Despite weakness in global economies and the resultant margin environment, RIL’s business and financial performance for the first half of FY2012-13 has been satisfactory,” said Mukesh Ambani, chairman and managing director, Reliance Industries.
The stock opened at Rs 839 and hit a high of Rs 840 on the NSE. A combined 895,150 shares have changed hands on the counter in opening deals on both the exchanges.
