Reliance Q1 net profit falls 21 per cent to Rs4,473 crore

20 Jul 2012

Reliance Industries Ltd (RIL) has registered a 21 per cent fall in first quarter net profit, its third quarterly decline, impacted by weak refining margins and declining gas output.

The company's net profit of Rs4,473 crore in the reporting period, however, beat street expectations of the business conglomerate posting a lower net profit of about 23 per cent.

Mukesh Ambani-led RIL, which has a presence in sectors ranging from energy to retail, had posted a net profit of Rs5,661 crore in the same period last fiscal.

''RIL has improved its earnings profile as profits from operations were higher on a sequential basis on the back of volume growth in the refining business. We have commenced our next phase of capital investments in the refining and petrochemical segments to enhance earnings and value of our core energy businesses,'' RIL chairman and managing director Mukesh D Ambani said.

The company's total revenue for the quarter rose to Rs91,875 crore, against Rs81,018 crore recorded during the same period of the previous financial year, while its turnover for the quarter under review rose 8.1 per cent to Rs94,926 crore over the trailing quarter.

RIL posted better-than-expected refining margins of $7.6 a barrel during the quarter, higher than analysts' expectations of about $7 a barrel.