Reliance, posted its highest quarterly profit in nearly three years on improved refining margins and high operating rates at all manufacturing facilities. The company sees increasing output at its main gas fiels as key to near-term earnings growth, and expects margins to firm up in its petrochemicals business, with upside in refining margins also possible. Petrochemical margins are expected to improve with stability in both the aromatic as well as the polymer market.
In the petrochemicals business, revenue growth was 13% at Rs 15,096 crore (Rs 13,340 crore). EBIT was up 0.1% at Rs 2,197 crore (Rs 2,195 crore) and fell by 1.3% to Rs 4,250 crore (Rs 4,304 crore) for the half year. This fall is attributed to incremental PP production from the Jamnagar SEZ which saw a significant margin reduction in propylene. The negative impact of margin reduction in PP-propylene and most products in polyester and ethylene chain was offset by margin improvements in PVC.