Steady growth in refining process propels RIL’s highest ever quarterly financial performance

<p>Reliance Industries Limited (RIL), India’s largest private sector enterprise owned and headed by Mukesh Ambani, recorded the highest ever quarterly financial performance results for the quarter ending 30th June, credited majorly to the surge in its refining process. Despite slight falling in oil and gas production and petrochemicals quarter, earnings from its refining business helped RIL assume a 16.7% rise in net profits.</p>
<p>RIL’s gross refining margins (GRM) dotted at $ 10.3/bbl as compared to $ 7.3/bbl in the same quarter last year. It rose to double digits for the first time after the December 2008 quarter. With sharp improvement in refining margins, the return on capital employed for the sector saw an increase by 18.2%; one of the best recorded levels. The energy major processed 17 million tonnes of crude and achieved its highest ever utilization at 110%, as compared to the global average of 83.3%. Because of this, the revenue generated increased from Rs. 50,531 to Rs. 73,689, an increase of 45.8%. Segment EBIT increased by 57.2% to account for Rs. 3,199 crore.</p>
<p>Refining segment of RIL saw this steep increase largely to the increase in volumes (6.5%) and a steady increase in its price. RIL sighted that due to increase in personal automobiles count and tight oil subsidies in international regions, which encouraged increase in exports played a key role in growth of the refining segment. Exports increased for Reliance by almost 60% in comparison to first quarter of 2011.</p>
<p>The turnover for the Mukesh Ambani led conglomerate in the April-June financial quarter saw an incline, which was brought around due to increase in all significant aspects, including gross turnover (up by 37.2%), exports (up by 57.5%), PBDIT (up by 9.3%), Profit before Tax (up by 20.3%), cash profits (up by 5.5%), net profit (up by 16.7%) and more strikingly in the gross refining margin ($ 10.3/ bbl).</p>