Reliance Industries Net Profit Jumps 16% To $2 Billion

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MUMBAI – Sitting on a cash equivalent of $12.6 bn (Rs 61,490 crore), private sector biggie Reliance Industries Ltd (RIL) on Saturday reported a 16% increase in its net profit at Rs 5,703 crore for the second quarter of the current year ending September 30. The company had reported a net profit of Rs 4,923 crore during the July-September quarter last fiscal.

RIL, which operates the world’s biggest refining complex in western India, attributed the rise in profits to strong refining margins, and said it earned $10.1 on turning every barrel of crude oil into fuel. The margins had been at $10.3 a barrel in the previous quarter.

The company’s turnover rose to Rs 80,790 crore in the second quarter of the current fiscal, as against R59,962 crore in the same period a year ago, the company said in a statement.

RIL chairperson and managing director Mukesh Ambani said the increase in profit was largely driven by improved performance in the refining and petrochemicals business.

“All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110%. RIL has strong balance sheet and sustained earning base to pursue growth opportunities,” said Ambani.

The sudden surge witnessed in RIL’s cash kitty follows the inflow of funds during the quarter from the UK energy major, British Petroleum. RIL has under a $7.2 billion deal sold a 30% participating interest in 21 of its oil and gas blocks in India, including the prolific gas producing KG-D6 gas block.

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