Reliance Industries reports 1.3 percent rise in net profit

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Mumbai:  Reliance Industries on Thursday reported a consolidated net profit of Rs 7,206 crore for the quarter ended September 30, which was higher by 1.3 percent over the first quarter of this financial year, but down 22.9 percent over the like quarter of last year.

The company’s standalone quarterly net profit stood at Rs 7,704 crore, up 17.9 per cent over the corresponding period of the previous year.

The main surprise was in the gross refining margin — the difference between the crude oil price and the value of petroleum products coming out of a refinery — of $10.1 per barrel, which was below $11.5 per barrel for the previous quarter, but well above market expectations.

“The company achieved outstanding second quarter results with strong refining business performance and record petrochemicals segment earnings,” Chairman Mukesh Ambani said in a statement after the release of the latest numbers.

“Refining business sustained high profitability in a tough environment, highlighting our exceptional refining assets, dynamic response to market trends and robust operations,” Ambani said.

“Petrochemicals segment gained significantly from higher volumes, integration and supportive product margins.”

On a consolidated basis, Relianc Industries achieved a turnover of Rs 81,651 crore, an increase of 9.6 per cent over th corresponding period of the previous year. “Increase in revenue is primarily on account of increase in volumes in refining, petrochemical and retail businesses.”

The results were announced after the close of Indian equity markets. The company’s shares, though, ended the day at Rs 1,088.50, up Rs 1.60, or 0.15 per cent.

The company also spoke about its latest venture — Jio 4G services — in the results statement.

It took exception to incumbent players not providing enough interconnect points for Jio calls to go through, and said its customers, as a result, continued to face severe quality of service issues.

“Call failure rates continue to be severe with over 75 calls failing out of every 100 call attempts on the networks of some of the operators. This is in breach of quality of service regulation that not more than 5 calls out of every 1,000 call attempts can fail.”

Nonetheless, Ambani said: “We are delighted and humbled by the enthusiastic adoption of Jio by India. Jio is built to empower every Indian with the power of data.”

IANS

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