RIL Q3 net down 14% at Rs 4,440 cr

Reduced earnings in the refining and petrochemicals business made Reliance Industries (RIL) post a drop of 13.6% in its net profit for the third quarter of this financial year.

For the quarter, the company's net profit stood at Rs 4,440 crore as against Rs 5,136 crore during the corresponding quarter of last fiscal.

Turnover of the company rose by 42.39% to Rs 85,135 crore for the quarter under review from Rs 59,789 crore in the same period last fiscal.

Gross refining margins (turning every barrel of crude oil into fuel) for the country's most valued firm stayed at $6.8 per barrel against $9 barrel during the October-December quarter of last fiscal.

"The global nature of our businesses and weakness in economic conditions resulted in reduced earnings in the quarter, particularly in our refining and petrochemicals businesses," said Mukesh Ambani, chairman and managing director, RIL.

Ambani however, added, "Notwithstanding these challenges, Reliance has delivered reasonably robust results with high operating leverage. Our focus remains on enhancing shareholder value by leveraging an exceptionally strong balance sheet, operating top decile assets and investing prudently in future growth engines."

Analysts had predicted that RIL may for the first time ever in a decade, report a discount to Singapore complex margin.

Singapore GRM contracted 12.3% quarter on quarter to average at $7.9 per barrel. This contraction is due to weaker gasoline and naphtha cracks.

SP Tulsian, an independent equity analyst said: "The numbers are disappointing. Market may react very negatively to this next week. I will not be surprised if the share reaches the level of Rs 750 on Monday. Even the news of buyback of shares by RIL may not salvage the stock."

On Friday, the company's shares gained 1% at Rs 793 on a day when the Sensex ended up 95.27 points at 16,739. The company released its third quarter number post market hours.