Reliance Industries Ltd. has reported a 28% jump in Q2-08 profit, as gains in petrochemicals offset lower refining margins caused by a weaker dollar.
Profit rose to Rs 38.37 bln (US$950 mln) in the July-September period, from Rs 30 bln in the same period a year ago. Net sales rose 6.6% to Rs 320.43 bln (US$8 bln). Refining margins declined primarily due to a sharp fall in product cracks, mainly in gasoline and naphtha. Reliance makes more than 75% of its money from oil refining.
Profit figures surpassed analysts' forecast, as they include sales and profit at Indian Petrochemicals Corp. Ltd., which RIL merged with itself in the last quarter.
Reliance's gross refining margin -- the difference between revenues earned from refining and the cost of refining before taxation -- dropped to an average of US$13.60 a barrel between July and September, down from US$15.40 per barrel in the preceding quarter. That was offset by gains in the petrochemical segment, where the company's operating margin improved to 15.6% from 14% in the April-June period.