Mumbai: Reliance Industries on Thursday reported a 23 percent drop in its second quarter net profit as compared to last year's figure, which was boosted by income from sale of US shale gas assets.
Consolidated net profit in July-September at Rs 7,206, or Rs 24.4 per share, was 22.9 per cent lower than Rs 9,345 crore, or Rs 31.7 per share, earning in the same period a year ago.
After excluding the exceptional item, the net profit was up 43.1 per cent.
Last year, the company had sold EFS Midstream LLC for Rs 4,574 crore.
"The company has achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings," Reliance Industries Limited Chairman and Managing Director Mukesh Ambani said.
Refining business sustained high profitability in a tough environment highlighting efficiency of RIL's refining assets, dynamic response to market trends and robust operations.
Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins, he said.
The owner of world's largest refining complex saw profits from the refining business dip 9.4 per cent as it earned USD 10.1 on turning every barrel of crude oil into fuel in the second quarter, lower than USD 10.6 per barrel gross refining margin in the same period of last fiscal.
RIL is using profits from its core refining and petrochemicals business to help its new telecommunications venture that started operations last month.
Ambani said he was delighted and humbled by the response the company's foray into telecom business under Jio brand has got. "Jio is built to empower every Indian with the power of data," he said.
"Our projects in the hydrocarbon chain are at advanced stages of mechanical completion and precommissioning activities. These projects will further strengthen our position as a leading operator in the energy and materials businesses," he added.
Oil and gas production business saw loss of Rs 491 crore as compared to profit of Rs 3,326 crore. This was because of lower production and lower oil and gas prices.
Petrochemical saw a massive 35.5 per cent jump in the segment profits to Rs 3,417 crore primarily due to increase in volumes of fiber intermediates and polyester products.
Retail business saw margins rise by 42.1 per cent to Rs 162 crore.
While revenue rose 9.6 per cent to Rs 81,651 crore, exports dipped 11.5 per cent to Rs 37,717 crore. Cost of raw material increased 4.7 per cent to Rs 41,134 crore and staff cost was up 17.7 per cent at Rs 2,017 crore.
Interest cost was lower at Rs 893 crore as against Rs 993 crore in the corresponding period of the previous year, primarily on account of lower exchange loss.
RIL's debt swelled to Rs 189,132 crore as on September 30 from Rs 180,388 crore as on March 31.
Cash in hand was down to Rs 82,33 crore from Rs 89,966 crore.
After including other comprehensive income (including relating to associates and joint ventures), the net profit for July-September was Rs 7,833 crore, down 24 per cent from Rs 10,314 crore in the same period of the previous fiscal.