Q2 petchem profits at India’s Reliance fall 6.3%

23 October 2008 15:58  [Source: ICIS news]

LONDON (ICIS news)--India’s Reliance Industries (RIL) has posted a profit before interest and tax of rupees (Rs)18.97bn ($481m) for its petrochemicals division, down 6.3% from Rs20.25bn year on year, despite a 19.96% increase in the division’s sales to Rs155.49bn, it said on Thursday.

Overall, RIL posted second-quarter net profit after tax of Rs 41.22bn, up 7.4% from Rs38.37 for the corresponding period last year.

Reliance said the year-on-year increase in net profit was fuelled by growth in sales and operating profit from its refining, oil and gas operations, according to company results.

The company reported net sales up 39.8% to Rs447.87bn from Rs320.43bn year on year.

Operating profit before interest, tax and investment-related other income grew 12% to Rs52.10bn from Rs46.52bn year on year.

The refining division boosted its sales by 54.4% to Rs363.93bn from Rs235.75bn, enhancing its profit before interest and tax (PBIT) 19.5% to Rs27.74bn from Rs23.21 year on year.

The oil and gas division increased its sales by 56.35% to Rs9.35bn from Rs5.98bn year on year. It improved its PBIT by 70.2% to Rs6.45bn from Rs.3.79bn year on year.

“At Reliance, we are at the final leg of capital expenditure in our key businesses and will see cash flows from these investments in the following quarters,” said RIL chairman Mukesh Ambani.

RIL was gearing up to meet the challenges emerging from “unprecedented” developments in the global economy, he added.  

($1 = Rs49.43)

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By: Naresh Minocha
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