RIL net dips 13.6% at Rs 4,440 cr
RIL chairman and managing director Mukesh Ambani said weakness in economy led to reduced earnings.business Updated: Jan 20, 2012 22:00 IST
Market heavyweight Reliance Industries Ltd (RIL) on Friday reported a 13.6% dip in its net profit at Rs 4,440 crore in the third quarter of the current financial year.
RIL chairman and managing director Mukesh Ambani said weakness in economy led to reduced earnings. “The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter, particularly in our refining and petrochemicals businesses,” he said in a statement. “Notwithstanding these challenges, Reliance has delivered reasonably robust results with high operating leverage.”
Analysts said the bottomline figure was “much below expectations” as the market was expecting it to be at least around Rs 4,500 crore. The net profit during the same period of the last fiscal stood at Rs 5,136 crore.
Ambani said that his company’s focus remains on enhancing shareholder value by leveraging an exceptionally strong balance sheet, operating top assets and investing prudently in future growth engines.
What, however, came to the rescue of the company was its income from treasury operations. The other income during the third quarter recorded a jump of 55.8% to Rs 1,717 crore against Rs 1,102 crore in the previous quarter of the last year.
RIL’s revenues for the third quarter at 40% at Rs 87,480 crore brought a sigh of relief.
Gross refining margins (GRMs) were equally disappointing at $6.8 per barrel, also at an all time low.