Hit by falling revenues from its oil and gas operations, Reliance Industries Ltd (RIL) on Monday announced a 5.7% year-on-year drop in net profit for the second quarter of the current fiscal at Rs. 5,376 crore as against Rs. 5,703 crore in the corresponding period of the previous year.
The company’s net sales for the July-September quarter, however, rose 15% to Rs. 90,335 crore against Rs. 78,569 crore in the corresponding period of the previous fiscal.
Revenue from the company’s oil and gas business was down 36.7 % to Rs. 2,254 crore on back of fall in natural gas output.
A sharp decline in gas production from RIL’s KG-D6 fields had seen the company’s profit falling for four previous quarters in a row.
KG-D6 is India’s largest natural gas producing fields.
RIL’s refining margins also saw a fall in the second quarter. RIL said it earned $9.5 (Rs 504) on turning every barrel of crude oil into fuel in the quarter as compared to a gross refining margin (GRM) of $10.1 a barrel in the year ago period.
Commenting on the results, Reliance Industries chairman and managing director Mukesh Ambani said business and financial performance for the first half of FY 2012-13 has been satisfactory despite weakness in global economies and the resultant margin environment.