RIL posts second consecutive decline in quarterly profits

24-Apr-09

Reliance Industries (RIL) has posted its second consecutive decline in quarterly profits. Q4 net profit fell 9.3% to Rs 3,546 crore, while sales dropped 24% to Rs 28,362 crore. This can be attributed to a fall in product prices and lower volumes on account of a temporary shutdown at a unit. Net profit fell 9.8% in the previous quarter –it’s first decline in profit after three years. RIL posted a gross refining margin (GRM)—the difference between the prices of the finished products and crude rates)—of US$9.9/barrel against a GRM of US$15.4 last year. RIL’s net profit excluding exceptional item fell 1% to Rs 3,874 crore in the March quarter as it provided for Rs 370 crore toward estimated claims on account of subsidiaries. RIL’s refinery at Jamnagar exited its EOU status from April 16 which allowed it to sell petroleum products in the domestic market. The company commenced gas production from the KG basin from April 2. RIL subsidiary RPL, however, has posted a net profit of Rs 84 crore for the January-March quarter. RPL, which is proposed to be merged with RIL, commenced production only in December.