Reliance Industries on Monday announced a 3.6 per cent rise in its third quarter net profit due to robust petrochemical earnings.
Consolidated net profit of Rs 7,506 crore, or Rs 25.4 a share, in October-December, was 3.6 per cent higher than Rs 7,245 crore, or Rs 24.5 per share, in the same period a year back, the company said in a statement.
RIl, the owner of world’s largest refining complex, earned $10.8 on turning every barrel of crude oil into fuel as compared to a gross refining margin (GRM) of $11.5 in third quarter of 2015-16 fiscal.
Turnover was up 16.1 per cent at Rs 84,189 crore.
Standalone profit for the December quarter was up 10 per cent at Rs 8,022 crore.
RIl’s refining operations, with a 1.2 million barrels per day crude oil refinery in Gujarat, reported a 4.3 per cent fall in profitability in Q3 to Rs 6,194 crore.
However, the petrochemicals business saw a 25.5 per cent jump in profit to Rs 3,301 crore, RIl said in the statement.
Refining and petrochemicals contribute around 90 per cent to overall revenue and profit.
The company, which launched its fourth-generation (4G) telecoms network Reliance Jio in September last year, offering free voice and data service until March 31, 2017, said subscriber base has risen to 72.4 million.
RIl has so far invested close to $20 billion in the venture.
RIl Chairman and Managing Director Mukesh D Ambani said: “Our robust integrated platform, sound operational processes and business portfolio aligned to the needs of emerging India enabled us to deliver another record performance in challenging market conditions.
“The refining business has delivered eight consecutive quarters of double-digit GRMs, benefiting from the global demand for transportation fuels and improved product cracks.”
He said RIl has commissioned the first phase of Paraxylene plant during the quarter, further deepening the linkage between refining and petrochemicals operations.
“Our growth strategy focuses on creating sustainable returns for our shareholders through value-enhancing, high- return projects. We are executing well on our projects under construction and remain confident on delivering on our growth plans.
“I am also delighted by our country’s eagerness to adopt to a digital life as witnessed by the record breaking launch of Jio. Its comprehensive ecosystem has enabled millions of Indians to lead a richer life through its offerings,” he said.RIl said exports from India operations were higher by 4 per cent at Rs 38,038 crore.
While employee costs were lower by 3.1 per cent at Rs 1,894 crore, other expenditure increased by 27.5 per cent to Rs 10,257 crore primarily
due to increase in power and fuel expenses with new capacity commissioning, and increase in maintenance expenses on account of planned shutdown at Dahej and Jamnagar.
Other income was higher at Rs 2,736 crore. Interest cost rose to Rs 1,209 crore as against Rs 945 crore in the corresponding period of the previous year and the increase is primarily on account of higher average exchange rate for the quarter.