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Reliance Industries has reported a net profit of Rs 4,440 crore for the third quarter ended December 31, 2011, down 13.6 per cent from Rs 5,136 crore in the same period last year. Turnover was up 40.2 per cent at Rs 87,480 crore (Rs 62,399 crore).
The gross refining margin fell to $6.8 ($9) a barrel during the quarter while the petrochemicals business saw the EBIT margin down at 10.9 (15.2) per cent.
The RIL Board gave its go-ahead to a buyback of up to 12 crore shares at a maximum price of Rs 870 a share, a 10 per cent premium to Friday's close of Rs 793. The exercise will involve a payout of Rs 10,440 crore when market expectations were a tad higher at Rs 12,000 crore.
Mr Mukesh D. Ambani, Chairman and Managing Director, said, “The global nature of our businesses and weaknesses in economic conditions resulted in reduced earnings in the quarter particularly in our refining and petrochemicals businesses.”
According to the company, higher crude prices led to raw material consumption jumping by over 50 per cent to Rs 203,294 crore on a year-on-year basis. Likewise, other expenditure increased by 13 per cent to Rs 13,106 crore (Rs 11,594 crore) due to higher power and fuel expenses coupled with exchange differences.
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