RIL Q2 net up 20% on quarter; refining margins help

Energy major Reliance Industries today reported a profit of Rs 5,376 crore for July-September, in line with expectation, up 20 percent on year and down 6 percent on quarter.

The company's net sales stood at Rs 93,265 crore compared with Rs 94,926 crore in the previous quarter and Rs 80,790 crore in the year-ago quarter.

[caption id="attachment_491513" align="alignleft" width="380"] Reuters[/caption]

Its gross refining margin was $9.5 per barrel vs $7.6 per barrel in the last quarter and about $10 per barrel in the year-ago period.

Commenting on the earnings, Chairman Mukesh Ambani said first half earnings have been satisfactory considering the gloomy global economic situation.

The margin on earnings before interest and tax for the refining segment was 4.2 percent as against 2.5 percent in the previous quarter.

More from Business

In the petrochemical business, the margin held steady at about 8 percent.

Operating profit in the refining segment rose 65 percent, in exploration and production 11 percent and that from the petrochemical business stable.

Its refining revenue was Rs 83,878 crore as against Rs 85,383 crore in the previous quarter, and petrochemical revenue was Rs 22,058 crore compared with Rs 21,839 crore.

Ambani said a turn around in the petrochemical business from the first quarter of 2013. The companny's debt as of 30 September stood at Rs 70,060 crore.

Other income of Rs 2112 crore, most of it through treasury gains, accounted for 31 percent of the company's pre-tax profit for the quarter.

With inputs from Reuters