Mumbai based Reliance Industries Limited on 16th January 2015 has reported net profit at Rs. 5256 crore for the quarter ending December 2014. Reliance has reported it’s first profit fall in nine quarters as crude’s slump drove down the value of stockpiles and narrowed its refining margin.
Net Profit for the company has decreased by 4.5% with respect to third quarter of last year and down by 12% with respect to second quarter of this fiscal year 2015.
Similarly total revenue for the company has also declined by 20.4% to Rs 96330 crore compared to Rs 121077 crore third quarter of last fiscal year and down by 15% compared to Rs 113396 crore of Q2 FY2015.
Sharp Y-o-Y fall in benchmark oil price of 30% was the key factor for the decline in revenue. Exports from India were lower by 21.5% at Rs 58,507 crore ($ 9.3 billion) as against Rs 74,495 crore in the corresponding period of the previous year.
Operating profit before other income and depreciation increased by 0.4 % on a Y-o-Y basis from Rs 8,651 crore to Rs 8,689 crore ($ 1.4 billion).
Basic earnings per share (EPS) for the quarter ended 31st December 2014 was Rs 17.8 as against Rs 18.7 in the corresponding period of the previous year.
Reliance Industries Limited’s gross refining margins (GRM) for the quarter stood at $ 7.3/bbl as against $ 7.6/bbl in the corresponding period of the previous year. EBIT for the quarter was up by 0.8 % Y-o-Y at Rs 3,267 crore.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited said: “Our focus on operational efficiency and the superior configuration of assets helped us deliver an industry-leading performance in the refining and petrochemicals business despite sharp decline in crude and feedstock prices. The performance also highlights the robustness of our risk management and proficiency of people and processes across the integrated chain. We continued to advance our refining and petrochemicals business capital investments, which will come to fruition over the next 4-6 quarters. These investments demonstrate our commitment to creating value through the business cycle. During the quarter, Reliance Retail registered Y-o-Y growth of 19% in turnover with improved margins and profitability”.
Reliance has two refineries in Jamnagar in the western state of Gujarat having capacity of processing 1.24 million barrels of crude everyday. It has ability to process cheaper, lower grades of crude into high value products.
Reliance Industries also producing natural gas from the KG-D6 block with partners BP plc and Niko reources ltd.