Rupee depreciation helps RIL post 1.5 pc increase in Q2 net

Helped by the rupee's depreciation, Mukesh Ambani-led Reliance Industries today reported a 1.5 per cent increase in September quarter profit to Rs 5,490 crore, while refining margins declined.
The company became the first in India to record revenue exceeding Rs 1,00,000 crore in a quarter, with turnover rising 14.2 per cent to Rs 1,06,523 crore.
Reliance said the rupee's depreciation impacted the company's numbers by 11 per cent in the quarter.
"...All the gross margins across our business take 11 per cent depreciation, most of that would get reflected...Net-net, (the rupee depreciation) is a plus," Chief Financial Officer Alok Agarwal told reporters after the results were announced.

The rupee fell to an all-time low of 68.85 against the dollar in late August and has recovered on the back of steps taken by the government and the RBI. It closed at 61.55 today.
Agarwal said the company saw a positive impact in almost all segments, except foreign loans and LNG imports, as a majority of its contracts are linked to the dollar.

The company earned USD 7.7 on turning each barrel of crude oil into refined fuel in Q2 compared with a gross refining margin of USD 9.5 a barrel a year earlier and USD 8.4 in the preceding three months. It processed a record 17.7 million tons of crude oil in the quarter.

Ambani, the Chairman and Managing Director, said the performance reflects the resilience of the firm's business model in "a period of volatility and uncertainty."
Jagannadham Thunuguntla, head of research at SMC Global Securities, said it has been a healthy quarter as the results have surpassed estimates.
"The future quarters profitability will depend largely on the improvement of gross refining margins, deployment of cash and KG-D6 basin gas production volumes revival," he said.
RIL shares rose 0.8 per cent to close at Rs 870.30 on the BSE. The results were announced after close of trading.
As of September 30, the oil-to-yarn and retail conglomerate had cash and equivalents of Rs 90,540 crore, more than enough to cover Rs 83,982 crore of debt.