RIL net up 24% at R5,502 cr on better refining margins
Net profit increased to R5,502 crore in the December quarter of the current fiscal from R4,440 crore a year earlier, and rose 1.7% from the September quarter. Revenue surged 10.1% to R96,307 crore. The market had expected a profit of R5,070 crore on revenue of R91,651 crore, according to analysts polled by Bloomberg. The RIL share, which has appreciated more than 22% since the beginning of July, closed up 1% at R898.95 on Friday on the BSE. The RIL GDR was up 5.11% or $1.68, trading at $34.44 RIL made a profit of $9.60 on every barrel of crude it processed into fuels — or gross refining margins — in the quarter, compared with $6.80 a barrel in the year-ago period, and $9.50 in the previous quarter.
The company has benefited from its strategy of shifting to cheaper, heavy crude to boost margins.
RIL, which runs the world's biggest refining complex at Jamnagar, Gujarat, processed 17.5 million tonnes of crude in the quarter, compared with 17.2 million tonnes a year ago. Earnings before interest and taxes (EBIT) margins for the refining and marketing business nearly doubled to 4.2% from 2.2% a year earlier.
However, RIL's exploration & production segment continued to disappoint, as segment EBIT halved from a year earlier and revenue plunged 32% to Rs 1,921 crore for the December quarter. The company
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