Reliance Industries Ltd’s operating profit down by 8% to Rs4,785 crore
October 29, 2009
Reliance Industries Ltd’s (RIL) Q2 turnover has gone up by 6% to Rs48,843 crore and its operating profit has declined by 8% to Rs4,785 crore. Before the results, the market had already reacted with the scrip dipping by Rs31 to Rs2,003.
The company has managed to maintain its turnover—thanks to a good performance on the domestic front—despite a sharp decline in export turnover. The refining business grew by 9% to Rs39,564 crore and oil & gas business trebled to Rs2,937 crore. However, the petrochemical business went down by 14.3% to Rs13,340 crore.
Profit before tax (PBT) in refining has come down to half at Rs1,347 crore because of lower gross refining margins of $6 per barrel against the previous refining margins of over $14 per barrel. PBT from the petrochemical business improved by 15.7% to Rs2,195 crore because of improved realisation on propylene, ethylene and benzene derivatives. PBT from the oil & gas segment almost doubled to Rs 1,226 crore. It shows that the company is earning PBT of around 41% from gas realisation. At present the company is producing 40 million cubic metres of gas per day and it is likely to increase it to 65 million cubic metres per day.
The company has also received court permission to merge its second refining plant of Reliance Petrochemicals Limited which has a refining capacity of 27 million tonnes. With this expansion, the combined capacity of its refining plant will be 60 million tonnes. –Dhruv Rathi[email protected]