15 October 2012 17:14 [Source: ICIS news]
LONDON (ICIS)--Reliance Industries’ earnings before interest and taxes (EBIT) for its petrochemicals unit fell by 24.6% year-on-year for the six months to 30 September 2012, despite increased revenues, as a result of higher feedstock prices, the company said on Monday.
The company posted EBIT of Indian rupees (Rs) 35bn ($662.88m, €511.77m) for the period compared to Rs46.4bn over the corresponding period in 2011, despite an 11.3% increase in petchem earnings to Rs438.98bn, the company said.
“EBIT margin for the period was 8% as compared to 11.8% in the corresponding period of the previous year due to the base effect of higher prices,” Reliance said in its financial statement for the period.
EBIT was flat quarter-on-quarter, with the company posting earnings of Rs17.4bn in the second quarter of the year compared to Rs17.6bn for the three months before that, it said.
Ethylene and propylene production declined 6% and 4% year-on-year in the first half, to 877,000 tonnes and 366,000 tonnes respectively, driven in both cases by a feedstock shortage at the company’s Nagothane and Dahej units.
Polyester demand was up 9% as a result of higher domestic consumption, while polyethylene terephthalate (PET) demand grew 14% year-on-year.
Reliance Industries group net profit in the six months to 30 September dropped by 13.3% year on year to Rs98.5bn, the company said. Profits in the fiscal second quarter were 20.2% higher than the preceding quarter, at Rs53.8bn compared to Rs44.7bn.
Reliance chairman Mukesh Ambani said: “[Reliance Industries’] business and financial performance for the first half of FY 2012-13 has been satisfactory despite weakness in global economies and the resultant margin environment.”
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(€1 = Rs68.39)
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