India’s Reliance Q2 net profit rises 15.8% on better petchem ops

17 October 2011 06:04  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL) generated a net profit of Indian rupees (Rs) 57.03bn ($1.16bn) in the second quarter ending September 2011, up by 15.8% year on year, the conglomerate said over the weekend.

This was due to improved performance from its refining and petrochemical business, the company said.

Sales for the period grew by 34.7% to Rs807.9bn, boosted by higher sales volumes and higher product prices, the company said in a statement.

RIL’s financial year ends in March.

In the six-month period from April to September, the company’s net profit increased by 16.3% year on year to Rs113.6bn, with sales rising by 36% to a record Rs1,645bn, the company said.

“All our manufacturing facilities operated at record levels, with refineries achieving operating rates of 110%,” said Mukesh Ambani, chairman and managing director of RIL.

In its petrochemical segment, RIL recorded a 39.5% year-on-year increase in revenue to Rs210.7bn, with an operating profit of Rs24.2bn, up 10.2% year on year, the company said.

Petrochemical production for the three months ending September totalled 5.7m tonnes, slightly higher than the 5.4m tonnes recorded in the same period last year.

In the first six months of its financial year, the operating profit for its petrochemical segment increased by 9.1% year on year to a record Rs46.4bn, following a 35.9% increase in sales to Rs394.3bn, the company said.

“RIL has [a] strong balance sheet and sustained earnings base to pursue growth opportunities,” Ambani said in the statement.

RIL said its April-September ethylene production grew by 17% to 929,000 tonnes, while its propylene output was up by 15% to 382,000 tonnes, citing turnarounds at its crackers in Hazira, Nagothane and Gandhar in the previous corresponding period.

Polymer production grew by 11% to 2.2m tonnes, although overall demand for the products was flat, RIL said.

“Domestic demand for polyester products decreased by 2% during the half year on account of price volatility and also [because of] labour and power shortage in downstream industries,” it said.

($1 = Rs49)

For more on RIL, visit ICIS company intelligence

By: Pearl Bantillo
+65 6780 4359

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