Mukesh Ambani led Reliance Industries Limited (RIL) has impressed trade analysts with its quarterly performance for the quarter ending June 30th. The conglomerate has recorded the highest ever financial performance in a quarter in the last three years, with the turnover for RIL soaring by a staggering 37.2% to Rs. 83, 689 crore and a net profit surge by 16.5% to Rs. 5,661 crore.
The turnover for the Mukesh Ambani led conglomerate in the April-June financial quarter saw an incline brought around by increase in gross turnover (37.2%), exports (57.5%), PBDIT (9.3%), Profit before Tax (20.3%), cash profits (5.5%), net profit (16.7%) and more strikingly in the gross refining margin ($ 10.3/ bbl).
Credited majorly to the surge in its refining process, Reliance Industries incurred gross refining margins (GRM) at $ 10.3/bbl as compared to $ 7.3/bbl in the same quarter last year. With sharp improvement in refining margins, the return on capital employed for the sector saw an increase by 18.2%; one of RIL’s highest accounted level. The Mukesh Ambani led energy giant processed nearly 17 million tonnes of crude and achieved its highest ever utilization at 110%, as against the global average of 83.3%. Refining segment’s EBIT also increased by 57.2% to account for Rs. 3,199 crore. Due to the favorable state of things, the revenue generated for the company increased to Rs. 73,689 from Rs. 50,531; an increase of 45.8% as compared to previous year’s quarterly results.
Despite slight fall in oil and gas production and petrochemicals, earnings from its refining business have helped RIL assume a successful April-June quarter. Increase in volume of production and cost price has fuelled favorable outcome, and if the state of things are to continue, Reliance is likely to maintain their successful run. Given the international hike in price of crude, and increase in number of personal automobiles, there exists a favorable demand for Reliance’s product. Increase in exports has already helped achieve high results this quarter.