Reliance Industries reported profits that were in line with expectations, with the gross refining margins surprising on the upside, while petchem margins disappointed.

The Q1 2013 net profits have come in at Rs 4,473 crore, which is 21% lower from the corresponding period of last year. The revenues during the Q1 2013 have increased by 13.4% to Rs 91,875 crore, from Rs 81,108 crore reported in the corresponding period of the previous year.

Basic earnings per share (EPS) for the quarter ended 30th June 2012 was Rs 13.7 ($ 0.2) against Rs 12.9 in the trailing quarter. Basic earnings per share (EPS) for the quarter ended 30th June 2011 was Rs 17.3.

Outstanding debt as on 30th June 2012 was Rs 73,213 crore ($ 13.2 billion) compared to Rs 68,259 crore as on 31st March 2012.

What has surprised is the gross refining margins (GRMs) of the company which has come in at $7.6 per barrel. Analysts had expected the GRMs an important determinant to measure refining margins at around $7 a barrel.

With the global investment environment particularly dismal, the GRMs are extremely encouraging. However, margins are expected to remain tepid going forward.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "RIL has improved its earnings profile as profits from operations were higher on a sequential basis on the back of volume growth in the refining business. We have commenced our next phase of capital investments in the refining and petrochemical segments to enhance earnings and value of our core energy businesses."

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