RIL Posts 24% Increase In Its Q3 Profit
Filed Under: Business | Posted: 01/21/2013 at 4:27AM
Comments | Region: India
RIL (Reliance Industries Limited), India’s largest private sector company announced a 24% surge in its net profit for the third quarter year on year to Rs. 5,502 crore along with an increase in the total turnover to Rs. 96,307 crore reporting a rise of 10.1 percent year on year. The mainstay of its business i.e. the petroleum sector served to be the impetus for the same as it reported $ 9.6 per barrel this year vis-à-vis $ 6.8 the previous year.
Speaking on this achievement of the company, Mukesh Ambani, Chairman and Managing Director, mentioned that it has witnessed a tremendous progress considering its margin expansion in the petrochemical sector and a rise in its earnings in the refining area. He also announced his decision to invest around Rs.100,000 crore in order to augment and strengthen their expertise in the petrochemical business and pave way for an upgrade in their refining activities. He is also confident that the company is poised to grow and earn profusely because of the investments that they intend to infuse. Additionally, he believes that this may accelerate India’s economic growth as it may create job opportunities for many young Indians.
Irrespective of the global downturn owing to the lower Singapore benchmark, the upsurge in the naphtha prices and the affordable importing of heavy crude from the Latin American countries has eked out, enabling the company to muscle its way to success.
RIL boasts of having the company’s most sophisticated refinery capable of processing residue heavy acid and at the same time turn out Euro IV and V grade petroleum products. The Jamnagar refinery has processed 52.4 million tonne of crude oil, reporting a utilization rate of 113%, higher than the average utilization rate in North America and Asia, and Europe that is deemed to be 84$ and 80%, respectively, during the nine month period that ended December 2012.
An 11.5% increase in the revenue of the petrochemical sector resulted in a revenue of Rs 22,053 crore along with a rise in the EBIT Margins to 8.8 percent, compared to 7.8 % in the earlier quarter ending September 2012.
Diesel price deregulation could further boost their earnings. Optimistic about their retail and broadband business, they believe that the retail sector will turn out to be profitable by 2013-2014 and the launch of 4G services will play a pivotal role in its expansion.
The company’s share closed 1.15 percent higher at Rs.900.20 on the National Stock Exchange.