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Reliance Industry posts Rs5,532 crore profit

Mumbai, July 20 () : Reliance Industries Ltd keeping up to market estimates posted a net profit of Rs 5,532 crore, clocking 19 per cent increase for the quarter ended June 30.

Better realization of diesel and kerosene sale are the reasons. Last year for the same quarter, the company reported a profit of Rs 4,473 crore.

Despite the rupee going down, RIL gross refining margin (GRM) increased from $7.4% last year to $8.4%. GRM is the difference in price between the cost of processed petrol and diesel and a barrel of crude oil.

RIL which deals in oil and gas sold last year quarter worth Rs 91,975 crore but this year quarter it sold only Rs 87,845 crore worth product, a drop of 4.6 %.

Sale of diesel and kerosene helped push up profits. Due to rupee fall, the interest paid shot up from Rs 784 crore to Rs 810 crore. The interest costs were higher, at Rs 810 crore ($136 million) against Rs 784 crore in the corresponding previous period, principally due to rupee depreciation.

US investments in shale gas recorded 71% growth and stood at 37.7 billion BCFE – an annual increase of 4%. KG-D6 fields on east coast disappointed RIL on the exploration and production front. Gas production dropped to 15.32 million mscmd a 53 per cent dip.

Last year for the same quarter, it got 33 mscmd a day. It said inflow of water and gradual decline was the reason. US investments in shale gas stands at Rs 30,000 crore.

Retail revenue was Rs 3,474 crore, a hike of 53% but petrochemical profits were stagnant at Rs 21,950 crore. Last year,it was Rs 21,839 crore. Its cash balance rose to touch Rs 93,066 crore. The petrochemical segment remaining flat and refining business doing well is not good in the long run, feel investors.

RIL stock on closing yesterday up by 0.67% stood at Rs 923.15.