Reliance industries net jumps 16% to Rs 5703 cr
Sitting on a cash equivalent of $12.6 bn (Rs 61,490 crore), private sector biggie Reliance Industries Ltd (RIL) on Saturday reported a 16% increase in its net profit at Rs 5,703 crore for the second quarter of the current year ending September 30. HT reports.business Updated: Oct 16, 2011 01:17 IST
Sitting on a cash equivalent of $12.6 bn (Rs 61,490 crore), private sector biggie Reliance Industries Ltd (RIL) on Saturday reported a 16% increase in its net profit at Rs 5,703 crore for the second quarter of the current year ending September 30.
The company had reported a net profit of Rs 4,923 crore during the July-September quarter last fiscal.
RIL, which operates the world's biggest refining complex in western India, attributed the rise in profits to strong refining margins, and said it earned $10.1 on turning every barrel of crude oil into fuel. The margins had been at $10.3 a barrel in the previous quarter.
The company’s turnover rose to Rs 80,790 crore in the second quarter of the current fiscal, as against R59,962 crore in the same period a year ago, the company said in a statement.
RIL chairperson and managing director Mukesh Ambani said the increase in profit was largely driven by improved performance in the refining and petrochemicals business.
“All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110%. RIL has strong balance sheet and sustained earning base to pursue growth opportunities,” said Ambani.
The sudden surge witnessed in RIL’s cash kitty follows the inflow of funds during the quarter from the UK energy major, British Petroleum. RIL has under a $7.2 billion deal sold a 30% participating interest in 21 of its oil and gas blocks in India, including the prolific gas producing KG-D6 gas block.
RIL said it has received “all payments due from BP” after the government’s approval to the RIL-BP deal in August 2011.
“The integration process is currently under way, and the joint teams are evolving strategies to operate across the gas value chain in India from exploration, development, distribution and marketing,” RIL said, adding that the RIL-BP teams are also reviewing key imperatives aimed at maximising production opportunities from KG-D6 and other discoveries.