Reliance Industries posts 24% jump in Oct-Dec quarter net profit
"RIL's performance has improved in this quarter with margin expansion in petrochemicals and record earnings in the refining business," company Chairman and Managing Director Mukesh D Ambani said.
Before the announcement of the earnings, RIL shares rose to a 15-month high to close at Rs 898.95 on BSE today. This is the highest close for RIL shares since October 28, 2011.
RIL shares have increased 7.2 per cent this year, adding to last year's 21 per cent surge, the most since 2009.
Ambani said RIL is investing Rs 100,000 crore in petrochemical sector.
"We are investing over Rs 100,000 crore by expanding our petrochemical capacities and adding value to our refining business," he said. "These investments will secure a significant change in RIL's earning capacity on commissioning of these projects".
RIL reported more than doubling of earnings before interest and taxation (EBIT) from the oil refining business at Rs 3,615 crore in the October-December quarter.
The twin refineries at Jamnagar can turn heavier grades of oil, which are typically cheaper, into high-value fuels.
The refining margin in the December quarter as only a shade better than USD 9.5 per barrel achieved in Q2 of current fiscal which the segment contributed Rs 3,523 crore to the EBITA.
The twin refineries with a total capacity of 62 million tons, processed 17.5 million tons of crude as compared to 17.6 million tons in Q2 of current year and 17.2 million tons in Q3 of last fiscal.
Segment revenues were up 13 per cent to Rs 86,641 crore.