Reliance Industries posts 22.9% fall in net profit for September quarter

Reliance Industries Limited (RIL) on Thursday said that its consolidated net profit declined 22.9 percent to Rs 7,206 crore for the September quarter (Q2) in comparison to Rs 9,345 crore in the corresponding period last fiscal. Sales rose 9.6 percent to Rs 81,651 crore in Q2 from Rs 74,490 crore, YoY. 

The net profit was higher in September 2015 quarter on account of an exceptional gain of Rs 4,310 crore due to gain on sale of investment in EFS Midstream LLC was Rs 4,574 crore and provision of Rs  264 crore for impairment of shale assets, the company said in a regulatory filing to the BSE after trading hours. But for the exceptional item, the rise in net profit in Q2 was 43 percent.

The gross refining margin came in at $10.1/bbl during the quarter, down from $10.6/bbl in the corresponding period last fiscal.

"Refining business sustained high profitability in a tough environment highlighting our exceptional refining assets, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins," Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said in a statement.

The company's debt rose to Rs 1,89,132 crore as of September 30, 2016 from Rs 1,80,388 crore six months ago. The EPS was Rs 24.4.

RIL's capital expenditure of Rs 17,210 crore was spread across segments that included ongoing projects in the petrochemicals and refining business at Jamnagar, Dahej, Hazira, US Shale gas projects, and digital services business.

The company formally launched its 4G services last month.

The RIL share price closed at Rs 1,088.50, up 0.15 percent to its previous close. The results were declared after market hours.