RIL Q4 net up 32% on robust refining margins, sales slide

Moneycontrol Bureau

Reliance Industries (RIL) beat estimates and has reported 31.9 percent year-on-year jump in March quarter profit to Rs 5589 crore, boosted by higher other income and an improvement in gross refining margins (GRMs), which is partly offset by lower gas output from its flagship KG-D6 basin.

The firm's other income stood at Rs 7998 crore as against Rs 6192 crore.

GRMs, the difference between the cost of processing crude and value of finished petroleum products sold, rose to USD 10.1/bbl from USD 7.6/bbl YoY, led by improved diesel and petrol margins.

Revenues are marginally down YoY to Rs 86618 crore as production in petchem and refining segments remained almost muted.

While the street had expected RIL to post Rs 5540 crore profit in Q4, revenues were estimated to be around 91,673 crore.

Shares of the company closed the day at Rs 804.50, up 1.36 percent ahead of the Q4 and FY13 earnings announcement. Read This: RIL refining margin to reach $11/bbl ahead: JM Financial

Meanwhile, for FY13, the company posted 4.8 percent YoY jump in net profit to Rs 21003 crore. Sales climbed 9.3 percent to Rs 371119 crore.

Here is a segment-wise performance of RIL during Q4

Exploration and Production: Revenues tumbled 39 percent to Rs 1597 crore on declining output from KG-D6 basin. Production from the wells dropped to 20 million standard cubic metres per day from its peak of 60 mmscmd in 2010. The vertical's Ebit margins also declined  to Rs 28.8 percent from 36.5 percent YoY.

Refining and marketing: Revenues grew 2.2 percent to Rs 77872 crore as its Jamnagar refinery produced 68.5 million tonnes of crude at an average utilisation rate of 110 percent, compared to 109 percent YoY.Ebit margins also expanded to Rs 4.5 percent from 2.2 percent YoY.

Petchem division: Sales grew 3.5 percent to Rs 22158 crore. Ebit margin came down to 8.6 percent from 10.2 percent. The decrease is primarily due to lower margins and polyester fibre and yarn products.