Reliance Industries Ltd (RIL) reported better than expected performance with gross refining margins and petchem business shining. GRMS at $10.10 per barrel, was ahead of expectations.
RIL achieved a turnover of Rs 81,651 crore ($ 12.3 billion), an increase of 9.6%, as compared to Rs 74,490 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of increase in volumes in refining, petrochemical and retail businesses.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "The Company has achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings. Refining business sustained high profitability in a tough environment highlighting our exceptional refining assets, dynamic response to market trends and robust operations. Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins," he noted.
Exports from India operations were lower by 11.5% at Rs 37,717 crore ($ 5.7 billion) as against Rs 42,636 crore in the corresponding period of the previous year due to lower product prices.
Employee costs were higher by 17.7% at Rs 2,017 crore ($ 303 million) as against Rs 1,713 crore in corresponding period of the previous year due to higher payouts and increased employee base.
Other expenditure decreased by 8.6% to Rs 9,062 crore ($ 1.4 billion) as against Rs 9,919 crore in corresponding period of the previous year primarily due to lower expenses on account of exploration in relinquished blocks and blocks under evaluation.