RIL Q1 net profit up nearly 19 percent

Reliance Industries (RIL) Friday reported a 18.9 percent rise in its first quarter net profit at Rs.5,352 crore (Rs.53.52 billion) on back of stronger margins in oil refining and petrochem businesses.

Net profit soared 18.9 percent to Rs.5,352 crore, or Rs 16.6 per share, in April-June quarter from Rs.4,503 crore, or Rs 13.8 per share, a year earlier, the company said in a statement.

Commenting on the results, Chairman and Managing Director Mukesh Ambani said :"The robust petrochemical demand augurs well for company's capex. We have invested $6 billion in US shale gas fields."

"The retail business revenue growth came in at 53 percent in Q1," he added.

The company reported a 84 percent rise in revenue from its shale gas venture in US on rising production.

However, gas production at its flagship KG-D6 field dropped by a steep 53 percent to 49.2 billion cubic feet or 15.32 million cubic metres per day. RIL had produced about 33 mmcmd in April-June quarter last year and 49 mmcmd in the same period of 2011-12.

"Fall in production is mainly attributed to geological complexity, natural decline in the fields and higher than envisaged water ingress," RIL said.

RIL stock closed 0.6 percent higher than its previous close in the BSE, at Rs.923.15 Friday.