20 April 2012 14:29 [Source: ICIS news]
LONDON (ICIS)--Reliance Industries’ petrochemical profits (earnings before interest and tax – EBIT) slumped 17.2% in the fourth quarter of its 2012 financial year to Rs21.74bn ($417m), it said on Friday.
Petrochemical revenues for the India-based energy and chemicals group were up 17.7% at Rs214.12bn.
For the full year ended 31 March 2012, petrochemical profits were down 3.6% at Rs89.67bn on revenues up 27.7% at Rs806.25bn.
Reliance said that EBIT margins had been lower on a quarter-to-quarter basis in the olefins and polyester chains but not in polyvinyl chloride (PVC), benzene and butadiene.
EBIT margins for the year were significantly lower at 11.1% compared with 14.7% in fiscal 2011.
Fourth quarter sales were up 8.2% up compared with the September to December 2011 period, with volume growth of 3.3% and price increases of 4.9%. The volume increase was due largely to paraxylene (PX) and the impact of the first full quarter of operation of the company’s MTBE/butene-1 plant in Hazira, India., it said.
Reliance said that it had seen weaker demand for polyester products over the course of the year but stronger domestic demand due to robust consumer growth of polyethylene terephthalate (PET).
Margins were weaker in polypropylene (PP), the largest polymer in its portfolio, while PVC was stronger. Reliance said that it had felt the impact in polyethylene (PE) of new capacity additions in the Middle East and China.
Overall demand for polymer products was up 6%, mainly due to growth in packaging, multifilament yarn, non-woven fabrics and moulded products, it said.. Ethylene and propylene production volumes for the year were up 10% and 8% respectively.
Reliance Industries group net profits dropped 21.2% in the fourth quarter to Rs42.36bn on turnover up 16.7% at Rs878.33bn. Full year 2011-12 net profits were down 1.2% at Rs200.40bn on a turnover up 31.4% at Rs3,397.92bn.
Operating profits for the year were down, it said on the transfer of 30% of its participating interests in exploration and production, lower oil and gas production and lower petrochemical margins.
($1 = Rs52.09)
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