Reliance Industries reports Rs 5,490 crores net profit in Q2 2013-14

Reliance Industries Ltd (RIL) became the first Indian firm to clock Rs 1-lakh crore sales in a quarter, when it registered a turnover of Rs 1,06,523 crore for the second quarter 2013-14, against Rs 93,266 crore in the previous quarter. It posted net profit of Rs 5,490 crore in the July-September 2013 quarter, up 1.5% compared with the same quarter of 2012-13, despite a 19% drop in its gross refining margins.
 
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, commented, “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 utilisation of best-in-class refinery assets and inherent flexibility in sourcing, product delivery contributed to healthy operating profits from our refining business.”
 
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During the quarter, revenue from refining & marketing segment increased by 16.2% to Rs 97,456 crore from Rs 83,878 crore in 2Q FY13. Growth in revenue was accounted by 4.9% higher volume and 11.3% increase in prices.
 
The revenue from petrochemicals segment for Q2 2013-14 stood at Rs 24,892 crore, up by 12.8% compared with Rs 22,058 crore in Q2 2012-13. “RIL’s 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,” said the company in a press release.
 
FOR COMPLETE REPORT READ: RIL first Indian firm to clock Rs 1-lakh-cr sales in a quarter