Reliance Q3 profit down on refinery closure
Reliance Industries Ltd posted a 15 per cent drop in quarterly net profit on Tuesday.business Updated: Jan 10, 2006 21:15 IST
Reliance Industries Ltd posted a 15 per cent drop in quarterly net profit on Tuesday, confirming analysts' expectations, mostly due to a prolonged refinery shutdown and weak refinery margins.
Reliance Group said October-December net profit dropped to Rs 17.76 billion from RS 20.91 billion a year ago.
Analysts had forecast net profit of Rs 19.17 billion on sales of Rs 187.5 billion.
Reliance, which has a market value of $29 billion, runs a 660,000 barrel-per-day refinery that has the ability to take cheap, heavy sour crude to make high-quality products, earning more than half its profits.
Analysts estimated Reliance's refining margins dipped to $7 a barrel in the fiscal second quarter to end-September, from $12 in July-Sept, as its refinery in Jamnagar in Gujarat was shut for planned maintenance for more than 50 days in October and November.
Shares in Reliance, which have the heaviest weight of 12 per cent in the top-30 BSE index, rose 12 per cent in the past quarter against an 8 per cent rise in the benchmark index, and beat a 10 per cent gain in the sector index.