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RIL Q2 Net Profit Up 16%, Meets Expectations

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Reliance Industries Ltd (RIL) on Sunday reported 16 per cent rise in net profit to Rs 5,703 crore for the quarter ended September 30. This was in line with expectations. RIL, which had in July-September quarter of previous fiscal reported a net profit of Rs 4,923 crore, said it earned $10.1 on turning every barrel of crude oil into fuel. Its turnover rose to Rs 80,790 crore in the second quarter (Q2) of the current fiscal, as against Rs 59,962 crore in the same period a year ago, the company said in a statement. Analysts polled by Reuters had said Reliance, controlled by billionaire Mukesh Ambani, was expected to report a 16 per cent rise in September-quarter profit on strong refining margins. Commenting on the results, Mukesh Ambani, Chairman and Managing Director, RIL said: "Our first half financial performance has been consistent. The increase in profits was largely driven by improved performance in the refining and petrochemicals business. All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110 per cent. RIL has strong balance sheet and sustained earning base to pursue growth opportunities." RIL achieved a record turnover for the half year ended September 30, 2011 of Rs 164,479 crore ($33.6 billion), an increase of 36 per cent on a year-on-year basis. Increase in volumes accounted for 3.5 per cent growth in revenue and higher prices accounted for 32.5 per cent growth in revenue. Exports were higher by 52.2 per cent at Rs 101,872 crore ($20.8 billion) as against Rs 66,936 crore in 1H FY10-11. Higher crude prices resulted in consumption of raw materials increasing by 44.4 per cent to Rs 129,104 crore ($26.4 billion) on a year-on-year basis. Employee costs were at Rs 1,593 crore ($ 325 million) for the half year as against Rs 1,277 crore Other expenditure increased by 17.3% from Rs 7,452 crore to Rs 8,743 crore ($ 1.8 billion) due to higher power & fuel expenses and exchange difference. Operating profit before other income and depreciation increased by 5.5 per cent from Rs 18,738 crore to Rs 19,770 crore ($ 4.0 billion). Net operating margin was lower at 12.0% as compared to 15.5 per cent in the corresponding period of the previous year due to base effect. Other income was higher at Rs 2,180 crore ($ 445 million) as against Rs 1,394 crore on a year-on-year basis primarily due to higher average liquid investments. Depreciation (including depletion and amortization) was lower by 10.2% at Rs 6,164 crore ($ 1.3 billion) against Rs 6,862 crore in 1H FY 2010-11 due to lower depletion charge in oil & gas as a consequence of the transfer of 30% Participating Interest (PI) in 21 blocks to BP. Interest cost was higher at Rs 1,205 crore ($ 246 million) as against Rs 1,083 crore in 1H FY 2010-11 principally due to higher foreign exchange difference. This resulted in gross interest cost being higher at Rs 1,481 crore ($ 302 million) as against Rs 1,311 crore in 1H FY 2010-11. Interest capitalized was higher at Rs 276 crore ($ 56 million) as against Rs 228 crore. Profit after tax was Rs 11,364 crore ($ 2.3 billion) as against Rs 9,774 crore for the corresponding period of the previous year. Basic earnings per share (EPS) for the half year ended 30 th September 2011 was Rs 34.7 ($ 0.70) against Rs 29.9 for the corresponding period of the previous year. Outstanding debt as on 30 th September 2011 was Rs 71,399 crore ($ 14.6 billion) compared to Rs 67,397 crore as on 31 st March 2011. Net gearing as on 30 th September 2011 was 5.4% as against 13.5% as on 31 st March 2011. Production from KG-D6 was 2.7 million barrels of crude oil, and 303.4 BCF of natural gas, a reduction of 42.1% and 20.3% respectively on a year-on-year basis. The reduction in production was mainly due to reservoir complexity. Production of gas condensate was 0.40 million barrels, an increase of 26.3 % over the previous period. Gas was sold as per the Government?s Gas Utilization Policy and at a price of $ 4.2 /MMBTU. (Agencies)