Reliance Industries (RIL) today reported a 1.5 per cent increase in September quarter profit, the slowest in a year, as refining margins declined even as it became the first company in the country to achieve sales of more than Rs 1,00,000 crore in a quarter.
Net profit rose to Rs 5,490 crore in July-September from Rs 5,409 crore a year earlier, Reliance Industries (RIL) said in a statement. Turnover or sales soared 14.2 per cent to Rs 1,06,523 crore.
The oil-to-yarn and retail conglomerate said higher sales in the refining and petrochemicals businesses and a weaker rupee helped to cushion the impact of falling gas production at its main fields in the Krishna Godavari basin, a dip in refining margins and muted revenue from organised retail.
Reliance Industries earned USD 7.7 on turning every barrel of crude oil into fuel in Q2 compared with a gross refining margin of USD 9.5 a barrel a year earlier and USD 8.4 in the preceding three months.
Reliance Industries processed a record 17.7 million tons of crude oil in the quarter.
Reliance Industries profit was also impeded by a 13.6 per cent rise in spending on power and fuel and selling expenses on increased exports to Rs 13,101 crore in the first half.
Reliance Industries had cash and equivalents of Rs 90,540 crore at the end of Q2, more than enough to cover Rs 83,982 crore of debt.
Reliance Industries Chairman and Managing Director Mukesh Ambani said the performance reflects the resilience of the firm's business model in "a period of volatility and uncertainty."
"Our diversified and integrated petrochemicals business captured margins across segments - delivering near-record profit levels even as the domestic economy slowed," he said, adding the company earned healthy operating profits by optimal utilisation of its twin refineries.
"Reliance Industries' ongoing counter-cyclical investments will strengthen our competitive position in each business segment," he added.