RIL profit declines 6.1 per cent at Rs3,852 crore
30 Oct 2009
Reliance Industries Ltd (RIL) yesterday that the company's profit fell 6.4 per cent in the second quarter on lower refining margins.
Net profit for the three months ended 30 September was Rs3,852 crore down from Rs4,120 crore in the same period last year, while revenue rose 6.1 per cent to Rs 46,848 crore, which was roughly in line with analysts expectations.
Gross refining margins plunged to $6 from $13.4 a barrel a year earlier.
Refining margins are under pressure from weakening global demand for petroleum products as also increasing competition from new refineries in India and China.
Decrease in prices was partially offset by higher volumes with refining revenues increasing 8.9 per cent to Rs39,564 crore in the second quarter of FY10 while petrochemicals revenues increased 14.2 per cent to Rs13,340 crore during the period under review.
On the other hand, revenues from oil & gas more than doubled to Rs 2,937 crore from Rs 1,864 crore in the corresponding period last year.
