Reliance Industries, the Mukesh Ambani-controlled retail to petroleum giant, on Saturday announced a 28.15 per cent rise in net profits for the quarter ended June 30, 2007. Quarterly profits have risen to Rs 3,264 crore compared with Rs 2,547 crore for the same period last year.
The total income net of excise of the company has risen 14.63 per cent to Rs 28,161 crore for the same quarter, up 14 per cent from Rs 24,566 crore for the corresponding period a year ago, according to a Reliance Industries release.
RIL attributed the profits to higher than ever Gross Refining Margin of US$ 15.4 (Rs 619.08) / bbl and a low rate of sales tax on refinery products. Other expenditure decreased by 20 per cent from Rs 2,442 crore to Rs 1,953 crore (US$ 480 million), mainly due to lower incidence of sales tax on account of higher export of refinery products. Exports of refinery products RIL crossed $ 4 billion, a rise of 30 per cent, according to the company release.
Another quarter of robust performance marked by the oil exploration and production industry, buoyed by high hydrocarbon prices and strong demand from end-users, have also helped the company's performance.
With natural gas prices in Asia and continental Europe predominantly indexed to oil prices, average gas prices futures were higher at US$ 8 (Rs 321.6) / MMBTU and are expected to remain above historical levels. In 2006, Asian LNG prices averaged US$ 7 (Rs 281.4) / MMBTU and were US$ 6 (Rs 241.2) / MMBTU in the previous year, said the RIL release.
Employee cost increased by 17 per cent from Rs 318 crore to Rs 371 crore (US$ 91 million). This increase was mainly on account of performance linked incentives and increments.
Shares of Reliance Industries closed at Rs 1,866.45, down 3.84 per cent on the BSE on Friday, on face of a meltdown in the Indian stock markets.