India's Reliance Industries reports Q2 petchems EBIT up 16%

29 October 2009 14:08  [Source: ICIS news]

LONDON (ICIS news)--Reliance Industries' (RIL's) petrochemical segment posted a 16% rise in fiscal second-quarter operating profit to rupees (Rs) 22.95bn ($466m, €317m) on better margins and stronger demand, the Indian oil, gas and petrochemical company said on Thursday.

The division's sales for the three months ending 30 September were up 14% to Rs133.40bn, Reliance added in a statement.

“During the period, domestic demand for most of the petrochemical products remained strong, with polymers demand higher by 25%, polyester by 15% and fibre intermediates by 7%,” RIL said.

“There was substantial improvement in overall petrochemical margins as the industry was operating on [a] low level of inventory leading to higher domestic realisation,” it added.

However, the group’s second-quarter net profit fell by 6.4% to Rs38.52bn year on year, despite revenue rising 6.1% to Rs488.43bn.

Figures released by RIL show the quarter was affected by a larger provision for tax than the same three-month period last year.

RIL’s profit before depreciation, interest and tax was up 18.3% to Rs78.45bn.

($1 = Rs47.18, €1 = Rs69.45)

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By: Lucy Craymer
+44 20 8652 3214

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