Oil major Reliance Industries Ltd (RIL) reported a 21 per cent dip in net profit for the quarter ending June 30, due to higher raw material consumption, sharp spike in other expenditure and decline in oil and gas revenues.

For the quarter, the company clocked Rs 4,473 crore net profi compared with Rs 5,661 crore in the year-ago period.

RIL notched its highest ever quarterly turnover of Rs 91,875 crore compared with Rs 81,018 crore in the corresponding quarter; a 13.4 per cent increase.

On a year-on-year basis, raw material consumption increased by 23.1 per cent. From Rs 64,443 crore it increased to Rs 79,335 crore, mainly on account of higher exchange rate.

Falling oil and gas production from its KG-D6 fields has also impacted the profitability of the quarter. The revenue of these two segments for the June quarter is Rs 2,508 crore (Rs 3,894 crore).

The company in a press statement said, “The KG-D6 field produced 0.9 million barrels of crude oil, and 104.40 billion cubic feet of natural gas, which was lower by 36.7 per cent and 33.1 per cent, respectively, over the previous period. The reduction in production was due to reservoir complexity and natural decline.”

For the June quarter, the company achieved higher than expected gross refining margin at $7.6 a barrel.

Mr Jagannathan Thunuguntla, analyst with SMC Global, said RIL's top-line has been helped by a weakening rupee. Of the top-line of over Rs 90,000 crore, the company has Rs 55,000 crore of exports, which has helped beef up the top-line.

Senior market analyst Mr Prakash Buva said the dip in the EPS is a matter of concern for the quarter. For the coming quarters, it clearly indicates more challenges for the company, he added.

The company released the results after close of market hours. The shares closed 0.70 per cent down at Rs 722.65 on the BSE.

> rahul.wadke@thehindu.co.in

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