Mumbai, July 24 (IANS) Reliance Industries on Friday reported a net profit of Rs.6,222 crore (around $1billion) for the first quarter of the current financial year, which was up 4.4 percent over Rs.5,957 crore in the like quarter of last year.
But the company’s turnover declined 23 percent to Rs.83,064 crore from Rs.107,905 crore during the periods under review, the company said in a regulatory filing with the exchanges.
“Our financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment,” chairman and managing director Mukesh Ambani said in a statement.
“The sharp increase in demand for transportation fuels helped us realize strong refining margins. Oil product demand globally is estimated to have grown at over 1.6 million units year-on-year, resulting in high refinery runs across all regions,” he said in the statement.
“Our petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain. In our retail business, we have reached significant milestones over the past couple of years and continue the high growth trajectory for this business.”
The company attributed the decline in revenue to a 43.3 percent year-on-year decline in benchmark (Brent) oil price.
Exports from its Indian operations were also lower by 44.9 percent at Rs.36,717 crore, as against Rs.66,600 crore in the corresponding period of the previous year due to lower product prices in line with lower crude oil prices.