Reliance Industries today posted a 32 per cent jump in its fourth quarter net profit, the biggest rise in almost three years, as strong margins in its oil refining business helped offset fall in natural gas production.
RIL, which operates the world's biggest refining complex at Jamnagar in Gujarat, reported a net profit of Rs 5,589 crore in January-March as against Rs 4,236 crore in the same period a year ago.
The better-than-estimated profit, the second consecutive quarter of increase after four quarters of decline, came on the back of rise in earnings from turning crude oil into petrol, diesel and other petroleum products.
RIL Chairman and Managing Director Mukesh Ambani said, "The growth in earnings was largely driven by strong and improved refining margins during the year."
RIL earned an average of USD 10.1 on turning every barrel of crude oil into fuel in the quarter as compared to USD 7.6 per barrel gross refining margin in the same period last year.
Sales, however, dropped 1.4 per cent at Rs 86,618 crore.
Debt soared to Rs 72,427 crore at the end of Q4, up from Rs 68,259 crore at the beginning of the fiscal. At quarter end, it had a cash pile of Rs 82,975 crore, making the company debt free on a net basis.
Also, production at its shale gas ventures in North America rose and annual revenue from its retail business crossed Rs 10,000 crore.
"We are working on projects that form the foundation of our aspirations to become one of the world's most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India," he said.
