Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday announced a 30 per cent rise in quarterly profit but lagged market estimates as lower-than-expected refining margins ate into the gains accrued to the company from higher gas output from its Krishna-Godavari KG-D6 gas block, off India’s east coast.
RIL reported a net profit of Rs 4,710 crore ($1.1 billion) during fourth-quarter (January-March) of 2009-10 as against Rs 3,627 crore in the fourth quarter of the previous fiscal, while its full-year turnover crossed the Rs 2,00,000 crore mark.
RIL’s gross refining margin for the quarter came in at $ 7.50 per barrel while the market was expecting close to $ 9/bbl. The refining margins for the fiscal 2010 stood at $6.6 per barrel.
Refining margins are the difference in value between the products produced by a refinery and the value of crude oil used to produce them.
Revenue in the fourth quarter rose to Rs 60,267 crore, more than double (by 125 per cent) from Rs 26,793 crore in the year-ago quarter, while other income amounted to Rs 615 crore, down from Rs 1,020 crore.
RIL’s operating margin declined to 15.87 per cent as against 21.9 per cent last year. Petrochem margins slipped to 14.4 per cent from 17.6 per cent and refining margins went down to 3.87 per cent from 10.8 per cent. Other income went down to Rs 615 crore from Rs 1,020 crore and depreciation cost increased to Rs 3,392 crore compared to Rs 1,448 crore.
For the fiscal year (2009-10), RIL’s net profit rose to Rs 16,236 crore from Rs15,309 crore in 2009. Turnover increased to Rs 200,400 crore from Rs 146328 crore a year-ago, while other income amounted to Rs.2,460 crore as against Rs 2,060 crore.
The company had recommended a dividend of Rs.7 per equity share of Rs 10 each for the fiscal year 2010.