Reliance Industries posted a 32 per cent jump in fourth quarter net profit, the biggest rise in almost three years, as robust refining margins helped make up for the dip in natural gas production. The company’s Gross refining margins — the difference between the cost of processing crude and the price of the finished product — stood at $10.1 a barrel in the fourth quarter against $7.6 in the year-ago period.
The net profit rose to Rs 5,589 crore in the quarter against Rs 4,236 crore in the year-ago period, though its income for whole of 2012-13 fell marginally to Rs 84,198 crore against Rs 85,192 crore in 2011-12.
On an annual basis, the company’s net profit stood at Rs 20,879 crore for FY 13 against Rs 19,724 crore for FY 12.
In a media interaction, Alok Agarwal, Chief Financial Officer, said that the fourth quarter profits were higher due to over $2 barrel increase in GRM, while the net sales took a dip of 1.4 per cent due to shutting down for three weeks of a crude distillation unit at the Jamnagar refinery.
The upstream business was affected by a decline in gas production in the KG-D6 by 35-40 per cent. But it was offset by a production growth of 80 per cent in the North America shale gas business, he said.
Agarwal added that in the retail business (super markets) the company achieved revenues of over Rs 10,000 crore. This business has made a turnaround with an EBITA (earnings before interest, taxes and amortisation) of Rs 75 crore,
Analysts said the results were more or less in line with expectations.
“The operating profit was slightly lower owing to reduced petrochemical profits, however increase in ‘other income’ and reduction in depreciation had a cushioning impact on the operational profit after tax (PAT),” added Deepak Pareek, Oil and Gas analyst at Prabhudas Lilladher Pvt Ltd.
The company announced a dividend of Rs 9 per fully paid-up equity share of Rs 10 each aggregating Rs 3,092 crore.
The RIL scrip ended at Rs 804.50 on the BSE on Tuesday, up 1.38 per cent from its previous close.