Reliance Industries Net Q2 up by 12.5 per cent

Petrochemical major Reliance Industries posted its Q2FY16 results, it's total revenue decreased by 33.8 per cent to Rs 75117 crore as compared to Rs 113396 crore in the corresponding period of the previous year. The decline in revenue was led by the 50.6 per cent year on year decline in benchmark (Brent) oil price.

Exports from Indian operations were lower by 35.5 per cent at Rs 42636 crore as against Rs 66065 crore in the corresponding period of the previous year due to lower product prices in line with lower crude oil prices.

The cost of raw materials declined by 49.7 per cent to Rs 41192 crore from Rs 81815 crore on yearly basis due to sharp decline in crude oil prices. Brent oil price averaged at USD 50.3/bbl in Q2FY16 as compared to USD 101.8/bbl in the corresponding period of the previous year. Other expenditures decreased by 7.2 per cent to Rs 8960 crore as against Rs 9660 crore on yearly basis due to lower fuel prices.

Operating profit before other income and depreciation increased by 9 per cent from Rs 9818 crore to Rs 10704 crore on yearly basis. Strong operating performance from refining and petrochemicals business coupled with favorable exchange rate movement was partially offset by lower contribution from Oil & Gas business.

Other income reduced to Rs 1,596 crore as compared to Rs 2,009 crore in corresponding period of the previous year, due to lower accruals on investments. PBDIT increased by 6.4 per cent to Rs 12,636 crore, EBIT margin improved by 400 basis points to 9.3 per cent, Interest cost was at Rs 972 crore compared to Rs 997 crore in corresponding period of the previous year.

The profit increased by 4.4 per cent to Rs 8157 crore y-o-y basis. Profit after tax including exceptional items was higher by 12.5 per cent to Rs 6720 crore against Rs 5972 crore on yearly basis. Exceptional items of Rs 252 crore represents the net impact of the gain on sale of investment in EFS Midstream LLC of Rs 2911 crore and provision for impairment, in shale gas assets held by Reliance Holding USA Inc. of Rs 2659 crore. RIL's gross refining margins (GRM) for Q2FY16 stood at seven year high of USD 10.6/bbl compared to USD 8.3/bbl in Q2FY15.

FII holdings reduced by 41 basis points to 18.68 per cent, DII holding increased by 47 basis points to 13.09 per cent as on 30th September 2015. Today, Reliance is trading at Rs 953, up by 4.45 per cent.