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Reliance posts Rs 4,110 cr net
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ASIANAGE on 24 July, 2008 02:03:06
 
Mumbai, July 24: Reliance Industries Ltd met forecasts with a 13 per cent rise
in quarterly profit, but analysts were disappointed after four quarters of 20
per cent-plus earnings growth.
The petrochemicals and refinery giant, valued at $77 billion, said strong
refining margins helped overshadow sluggish growth at its petrochemicals
business, and analysts expect a new refinery and gas output to boost earnings in
the coming quarters.
It is expected to begin producing gas from its deep-sea fields off India’s
east coast by September.
A 580,000 barrels-per-day refinery, being built by unit Reliance Petroleum in
western India was 94 per cent complete, the company said this week, and analysts
expect the project could also start operations in the September quarter.
Reliance Industries, India’s top petrochemicals maker, already runs the
country’s biggest refinery, a 660,000 barrels-per-day unit at the same
location, and the new refinery will make the combined facility the biggest in
the world.
"We will play major role in India’s energy security as we are focusing to be
among the top leaders in the world in the oil and gas sphere," chairman Mukesh
Ambani said in a statement.
Reliance said net profit rose to Rs 4,110 crore ($976 million) in its fiscal
first quarter ended June 30 from Rs 3,630 crore reported a year earlier, helped
by refining margins. Net sales grew to Rs 43,050 crore from Rs 31,290 crore.
Analysts had forecast a net profit of Rs 4,140 billion rupees on net sales of Rs
41,870 crore in a Reuters poll. Reliance said gross refining margins were $15.7
a barrel, well above the benchmark Asian Dubai crack margin, which averaged
about $8 a barrel in the June quarter. The margins, which were $15.4 a year
earlier, are bolstered by the refinery’s ability to process cheaper,
high-sulphur crude oil.
"The numbers are just not up to the mark. The refining margins were
particularly disappointing. We were expecting in excess of $16," V.K. Sharma,
head of research at Anagram Stock Broking said. — Reuters