Reliance posts Rs. 7,704 cr standalone net profit in Q2

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 Mumbai, Oct 20:  

Reliance Industries Ltd, on Thursday, posted an 18 per cent rise in standalone net profit at Rs. 7,704 crore for the quarter ended September 30, 2016 against Rs. 6,534 crore in July-September 2015 quarter.

Total income has increased to Rs. 66,624 crore from Rs. 66,198 crore.

Consolidated net profit

The company reported a 24 per cent drop in its second quarter consolidated net profit at Rs. 7,833 crore as compared to Rs. 10,314 crore in the same period a year ago.

However, revenue was higher at Rs. 81,651 crore in July-September as compared to Rs. 74,490 crore in the same period a year ago, the company said in a filing to stock exchanges.

Refining margin

Reliance said its gross refining margin, or profit earned on each barrel of crude processed – a key profitability gauge for a refiner – was $10.1 per barrel for the quarter.

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited, said: “The company has achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings. Refining business sustained high profitability in a tough environment highlighting our exceptional refining assets, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins.

The second quarter revenues for the Oil & Gas segment decreased by 35.7 per cent Y-o-Y to Rs. 1,327 crore. The decline in revenue was led by lower upstream production in domestic blocks coupled with lower oil and gas prices in both the domestic and US shale segments.

The unfavorable upstream price environment impacted segment EBIT which was at (minus) Rs. 491 crore, as against Rs. 3,326 crore (including exceptional items of Rs. 4,574 crore on account of gain on sale of EFS Midstream LLC and Impairment of Rs. 264 crore in the corresponding period of the previous year

Other costs

Cost of raw materials increased by 4.7 per cent to Rs. 43,134 crore from Rs. 41,191 crore on Yo-Y basis primarily on account of higher volume of crude processed and increased petrochemicals production during the quarter. Employee costs were higher by 17.7 per cent at Rs. 2,017 crore as against Rs. 1,713 crore in corresponding period of the previous year due to higher payouts and increased employee base