RIL Q3 net profit jumps 4.1% QoQ; GRM rises to $10.8/bbl

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NEW DELHI: Reliance IndustriesBSE -1.21 % on Monday reported a 4.12 per cent QoQ rise in standalone net profit to Rs 8,022 crore for the quarter ended December 31, 2016. The numbers came in higher than Rs 7,856 crore anticipated by analysts polled in an ETNow survey.

The largest private sector player in terms of profit had reported a net profit of Rs 7,704 crore for the September quarter.

The bottom line of refining major was up as Singapore gross refining margin (GRM) — a gauge of regional refining margins — increased by $1.6 a barrel sequentially to $6.7 a barrel in the third quarter of FY17.

Standalone income from operations for the quarter stood at Rs 66,606 crore, up 3.5 per cent over Rs 64,344 crore in the September quarter. Analysts in the ETNow poll had predicted a 19 per cent quarter-on-quarter (QoQ) fall in revenues to Rs 65,829 crore.

Ebitda for the quarter stood at Rs 10,604 crore against Rs 11,426 crore estimated in the ETNow poll.

Gross refining margin (GRM) for the quarter came in at $10.8/bbl, falling below analyst estimate of $11.5 a barrel. The number was higher than $10.1 a barrel reported for the previous quarter.

“The refining business has delivered eight consecutive quarters of double-digit GRMs, benefiting from the global demand for transportation fuels and improved product cracks,” said Mukesh D. Ambani, Chairman and Managing Director at Reliance Industries.

GRM is a measure of the difference between the per barrel price of crude oil and the value of products distilled from it.

On consolidated basis, the company reported a turnover of Rs 84,189 crore, up 3.1 per cent QoQ (16.1 per cent YoY) over Rs 81,651 crore in the September quarter. The rise in revenue was led by increase in prices of refining and petrochemical products led by 13 per cent increase in Brent crude prices, the company said. Profit was up 4.2 per cent QoQ on consolidated basis to Rs 7,506 crore.

The company’s outstanding debt rose to Rs 1,94,381 crore ($ 28.6 billion) at the end of December quarter, compared with Rs 1,80,388 crore as of March 31, 2016. Cash and cash equivalents at the end of December quarter was at Rs 76,339 crore, down from Rs 89,966 crore as on March 31, 2016.

Here’s a snapshot of the company’s consolidated results: