Jul 21, 2013, 12.33 PM | Source: Moneycontrol.com

Reliance Industries Q1 net up 19% on GRM surge

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.

Moneycontrol Bureau

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.

Must Read: DGH refuses to approve RIL's $3.5 billion plan for NEC-25

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:
Revenues grew 42 percent to Rs 1454 crore
Ebit margins  to 24.2 percent  vs 38.8 percent 

Refining and marketing
Revenues up 4.6 percent to Rs 81458 crore
Ebit margins grew to 3.6 percent versus 2.5

Revenues up 0.5 percent to Rs 21950 crore
Ebit margins stood at 8.6 percent versus 8 percent

Management commentary

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.

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