Reliance Industries
(RIL) has posted its fourth consecutive year-on-year drop in its September
quarter profit on declining natural gas output from its KG-DG fields and poor
petchem margins.
Net profit fell 5.7 per cent to Rs 5376 crore,YoY. Sales
were however up 15.4% to Rs 93265 crore, YoY. The numbers got a boost from
other income which almost doubled to Rs 4016 crore, YoY primarily due to higher
average liquid investment
The company's refining segment recorded gross refining
margins at USD, 9.5/bbl versus USD 10.1/bbl, YoY.
Mukesh Ambani, CMD, RIL in a statement said, " Despite
current weakness in global economies, we continue to invest in our long-term growth projects to
deliver sustainable value to our shareholders."
Shares of the company closed the day up 0.5% to Rs 823.20
ahead of the earnings announcement.
Meanwhile, have a look at segment wise performance of the
company
Exploration and Production:- The vertical recorded 36.7%
drop in revenues to Rs 2254 crore,YoY. EBIT margins also declined 38.4% versus
43%. The company said output from its flagship field KG-D6 declined 36% due to
technical glitches.
Refining and marketing business: Sales in this segment grew
23.1% to Rs 83878 crore due to higher prices and better volumes. Gross refining
margins or GRMs was down to USD 9.5/bbl versus USD 10.1/bbl. GRMs--the
difference between the cost of processing crude and the revenue from selling
finished petroleum products is considered a key source of income for the
company.
Petchem division: Sales rose 4.7% to Rs 22058 crore. EBIT
margin declined to 8% as compared to 11.8%, YoY due to the base effect of
higher prices. Petchem business is seeing a slow cycle and due to political
problems in China. Also, an increase in naphtha prices and cheaper exports from
the US made matters worse for naphtha crackers in Europe and Asia.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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