RIL profit jumps 27.8 pc on higher margins, revenue

Meeting market estimates, Reliance Industries (RIL) posted a 27.8 per cent rise in net profit during the quarter ended September 2010 on rising revenues from refining and oil and gas production. Net profit for the July-September quarter was Rs 4,923 crore, up from Rs 3,852 crore in the year-ago period.







Turnover of the most valued Indian company rose 22.8 per cent Rs 59,962 crore, up from Rs 48,843 crore a year ago. Net operating margin was lower at 15.5 per cent as compared to 16.7 per cent in the corresponding period of the previous year due to base effect and softer margin environment in petrochemicals partially offset by incremental share of the higher margin oil and gas business and improved refinery margins. "Other income was marginally higher at Rs 1,394 crore as against Rs 1,337 crore as compared to the corresponding period of the previous year primarily due to higher average cash balances," it said.



RIL chairman Mukesh Ambani said, "Improved refining margins and high operating rates at all our manufacturing facilities led to a record quarter. We are focused on identifying opportunities that leverage India's unique demographic and market potential."







RIL's gross refining margin (GRM) for quarter was at US$7.9 per barrel as against US$ 6.0/bbl in the corresponding period of the previous year.







"RIL GRM premium over Singapore complex margin widened primarily due to efficient global sourcing of crude and higher light-heavy differential. EBIT for the refining business was at Rs 4,227 crore ($941 million), an increase of 59.8 per cent and the EBIT margin increased marginally to 4.2 per cent as compared to 4.1 per cent in the corresponding period of the previous year, due to higher refining margins partly offset by higher depreciation on account of SEZ refinery," RIL said.


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