20 July 2012 15:46 [Source: ICIS news]
LONDON (ICIS)--Reliance Industries’ petrochemicals profits fell 20.7% year on year to Indian rupee (Rs) 17.56bn ($318m, €259m) in its fiscal first quarter ended 30 June 2012 on weaker polyester chain margins, the company said on Friday.
Petrochemicals segment revenues for the period were up 18.9% year on year to Rs218.39bn. Reliance said a rise in prices accounted for 10.8% of the growth in revenue, while higher sales volumes accounted for 8.1% of the overall increase, it added.
Weaker profit margins for polyester and polyester intermediates were slightly offset by margin deltas on polymer products, Reliance said. Polyester product demand was up 18% year on year, however, and polymers demand up in aggregate by 22%, it added.
Reliance Industries group net profit for the quarter fell 21.0% year on year to Rs44.73bn, the company said in a report to the Bombay Stock Exchange. The fiscal first-quarter net result, however, was higher than the Rs42.36bn earned in the group's fiscal fourth quarter ended 31 March 2012.
Fiscal first-quarter group sales, net of excise duty, were up 13.4% year on year at Rs918.75bn, Reliance said.
Commenting on the results, Mukesh Ambani, chairman and managing director, of Reliance Industries said: “RIL has improved its earnings profile as profits from operations were higher on a sequential basis on the back of volume growth in the refining business.
“We have commenced our next phase of capital investments in the refining and petrochemical segments to enhance earnings and value of our core energy businesses,” he added.
($1 = Rs55.14; €1 = Rs67.68)
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