Reliance Industries announced its third quarter results on Tuesday post market hours. For the quarter ended December 2015, the company posted net profit of Rs 7290 crore, up 38.69 per cent year-on-year, against Rs 5256 crore in the corresponding quarter a year ago.
The company earned Rs 6720 crore in the sequential quarter ended September 2015.
Total income from operations of RIL stood at Rs 68,261 crore, down 27 per cent, against Rs 93528 crore in the same quarter last year.
Decline in revenue was led by the 42.7 per cent year-on-year decline in benchmark (Brent) oil price. Exports from India operations were lower by 37.5 per cent at Rs 36,564 crore ($ 5.5 billion) as against Rs 58,507 crore in the corresponding period of the previous year due to lower product prices in line with lower feedstock prices.
Employee costs stood higher by 30.9 per cent at Rs 2,026 crore ($ 306 million) as against Rs 1,548 crore in corresponding period of the previous year due to VRS payment and increased employee base in subsidiaries.
Other expenditure decreased by 12.9 per cent to Rs 8,549 crore ($ 1.3 billion) as against Rs 9,811 crore in corresponding period of the previous year due to lower fuel prices.
Operating profit before other income and depreciation increased sharply by 30.8 per cent on a yoy basis from Rs 8,689 crore to Rs 11,368 crore ($ 1.7 billion). Strong operating performance from refining and petrochemicals businesses coupled with favorable exchange rate movement was partially offset by lower contribution from Oil & Gas business.
On a standalone basis, RIL net profit increased by 41.9 per cent year-on-year to record level of Rs 7,218 crore. gross refining margin stood at $11.5 per cent bbl for the quarter under review, highest in highest in the past seven years.
Commenting on the results, Mukesh D Ambani, chairman and managing director, Reliance Industries said, “Our portfolio of world-class refining and petrochemical assets are paying-off handsomely. Refining business delivered yet another record performance on the back of seven-year high refining margins and highest ever crude throughput. In the current 9-month period, our refining business EBIT has surpassed the record earnings it achieved in FY15. The petrochemical business also delivered amongst its best quarterly performance, driven by robust polymer margins. The benefits of low crude oil and energy prices for our downstream businesses clearly outweigh the impact of these factors on our upstream segment, reflecting in the record earnings for the quarter.”