Mukesh Ambani led Reliance Industries (RIL) announced a marginal rise in consolidated net profit for the quarter ended June 2015. During the quarter, the profit of the company rose 4.45% to Rs 62,220 million from Rs 59,570 million in the same quarter last year. On standalone basis, the profit stood at Rs 63.18 billion as against analyst estimates of Rs 63.50 billion.
For the quarter ended Jun. 30, 2015, RIL achieved a turnover of Rs 830.64 billion, a decrease of 23.0%, as compared to Rs 1079.05 billion in the corresponding period of the previous year. Decline in revenue was led by the 43.5% Y-o-Y decline in benchmark Brent oil price.
RIL's gross refining margins (GRM) for first quarter of FY16 stood at a six year high of USD 10.4 a barrel as against USD 8.7 in the same period last year.
Operating margin for the quarter stood at 9.25% as compared to 5.93% for the previous year period. Operating income for the quarter was Rs 71,360.00 million, compared with Rs 62070 million in the previous year period.
Earnings per share for the quarter stood at Rs 21.10, registering 3.94% growth over previous year period.
RIL's gross refining margins (GRM) for 1Q FY16 stood at a six year high of USD 10.4/bbl as against USD 8.7/bbl in 1Q FY15.
Outstanding debt as on Jun. 30, 2015 was Rs 1708.14 billion (USD 26.8 billion) compared to Rs 1608.60 billion as on Mar. 31, 2015.
Cash and cash equivalents as on Jun. 30, 2015 were at Rs 873.91 billion (USD 13.7 billion). These were in bank deposits, mutual funds, CDs and Government Bonds and other marketable securities.
The capital expenditure for the quarter ended Jun. 30, 2015 was Rs 326.51 billion (USD 5.1 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US Shale gas projects.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said, 'Our financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment. The sharp increase in demand for transportation fuels helped us realize strong refining margins. Oil product demand globally is estimated to have grown at ~1.6 MMBPD YTD, resulting in high refinery runs across all regions.
Our petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain. In our retail business, we have reached significant milestones over the past couple of years and continue the high growth trajectory for this business.'
On outlook, Ambani said, 'As we look forward, we are committed to accelerating the growth of operating EBITDA. We are leveraging the strength of our integrated value chains to deliver sustainable growth. Large investments in our petrochemicals and refining businesses are based on advantaged feedstocks to enable us to stay among low-cost, competitive producers in an evolving hydrocarbon chain environment.
We maintained rapid progress in project construction activity at Jamnagar. The Company's world-scale petcoke gasification project and ethylene cracker are on track for planned start-up in 2016.
We are also in the final lap of launch of our Jio services which will bring about a positive transformation in the lives of millions of Indians.'
Shares of the company declined Rs 20.6, or 1.97%, to settle at Rs 1,025.05. The total volume of shares traded was 290,271 at the BSE (Friday).
