20 January 2012 16:03 [Source: ICIS news]
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LONDON (ICIS)--Reliance Industries Ltd (RIL) generated a net profit of Indian rupees (Rs) 44.4bn ($884m) in the quarter ending 31 December 2011, down by 14% year on year, the India-based conglomerate said on Friday.
This was as a result of lower earnings from its oil and gas, refining and petrochemical businesses, the company said.
“The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter, particularly in our refining and petrochemicals businesses,” said Mukesh Ambani, chairman and managing director of Reliance Industries.
Reliance said its refining business in the three months ending 31 December, following two strong quarters, saw a sharp decline in margins as lower demand and high product inventories impacted product cracks.
However, sales for the quarter grew by 40% to Rs874.8bn from the same period the year before, the company added.
RIL’s financial year ends in March.
Compared with the previous quarter, RIL’s net profit fell by 22%, while its sales rose 8%.
For the nine months ended 31 December 2011, RIL’s net profit rose 6.0% from with the same period in 2010 to Rs158.0bn.
Sales for the nine-month period increased by 37% to Rs2,519.9bn. During this period, an increase in volumes accounted for 3.9% growth in revenue, while higher prices accounted for 33.5% growth in revenue.
"Overall demand for polymer products improved by 3% mainly due to growth in the packaging sector and moulded products. Demand for PVC (polyvinyl chloride) was higher by 6% mainly due to strong demand from the agriculture sector," the company added.
Production of fibre intermediates during th nine-month period increased by 5% year on year to 3.6m tonnes, while polyester production volumes decreased by 3% to 1.2m tonnes.
Looking ahead Ambani said: “Our focus remains on enhancing shareholder value by leveraging an exceptionally strong balance sheet, operating top decile assets and investing prudently in future growth engines.”
($1 = Rs50.24)
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