Reliance Industries has posted a 19 percent year-on-year rise in June quarter profit to Rs 5352 crore. Sales have however declined to Rs 87645 crore, down 4.5 percent YoY.
Reliance Industries has posted a 19 percent year-on-year rise in June quarter profit to Rs 5352 crore, boosted by stronger margins in its main oil refining business and higher other income.
Sales have, however, declined to Rs 87645 crore, down 4.5 percent Y-o-Y on lower output from KG-D6 basin which has recorded a 50 percent decline to around 15 million standard cubic metres per day.
Gross refining margins (GRMs) stood at USD 8.4/bbl versus USD 7.6/bbl YoY.
Shares of RIL closed the day at Rs 923.15, up around a percent before the earnings announcement.
Factors that impacted RIL’s Q1 numbers
*Employee costs went up around 6 percent YoY to Rs 899 crore
*Other expenditure also increased 9 percent to Rs 6,296 crore primarily due to higher cost of fuel and power.
*Other income rose 33 percent to Rs 2,535 crore on account of profit on sale of investments.
*Interest cost shot up over 3 percent to Rs 810 crore due to depreciation of the Indian rupee.
*Employee cost went up 6 percent to Rs 899 crore.
Have a look at segment-wise performance of the company
Exploration and production:
Refining and marketing
Commenting on the results, chairman Mukesh Ambani said, "The robust petrochemical demand augurs well for company's capex." We have invested USD 6 billion in US shale gas fields. The firm has relinquished 3 blocks in India during the quarter. "The retail business revenue growth came in at 53 percent in Q1," he said.
READ MORE ON Reliance Industries, RIL, Petchem margins, GRMS, KG-DG, Mukesh Ambani, E&P, gas discovery, weak rupee, crude, Reliance JIO, capex
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