Reliance posts third consecutive fall in quarterly profit

Reliance Industries Ltd has posted its third consecutive drop in quarterly profit. Net profit for the June quarter of Reliance Industries (RIL) fell 21% to Rs 4470 crore on dwindling margins in all its business segments - refining, petrochemicals and oil & gas production. Sales, however rose to Rs 91,875 crore due to higher petrochemical volumes when compared with Rs 83,869 crore, YoY. Its petrochemicals business posted a 19% rise in revenue on higher demand and prices, but margins declined on narrower spreads. Oil and gas exploration business posted a 36% fall in revenue, mainly due to lower production at its main KG-D6 block. Reliance holds Rs 707.32 billion in cash reserves at the end of June, up from the previous quarter. The company has seen its cash hoard multiply in the last two years, resulting in a disproportionate increase in profits from treasury operations.