Mumbai, Oct 15 (IANS): Mukesh Ambani-led Reliance Industries Saturday said its net profit for the quarter ended Sep 30 had risen 15.8 percent at Rs.5,703 crore compared to Rs.4,923 crore it logged in the previous corresponding quarter.
The oil-to-retail giant's turnover rose 34.7 percent to Rs.80,790 crore in the July-September quarter, according to a company statement.
"Our first half financial performance has been consistent. The increase in profits was largely driven by improved performance in the refining and petrochemicals business," said Ambani.
"All our manufacturing facilities operated at record levels with refineries achieving operating rates of 110 percent," he added.
One of the mainstays of the company's business, the refining segment saw revenue rise 41 percent to Rs.141,785 crore.
"Higher prices accounted for 38 growth in revenue while increase in volume accounted for 3.5 percent growth in revenue (of refining segment)," the company explained.
Gross refining margin (GRM) was at $10.1 per barrel in the quarter ended Sep 30 and was registered at $ 10.2 a barrel in the first half of the current fiscal. The GRM of $10.2 was a 32 percent rise on a year-on-year basis.
The petrochemicals business too saw robust topline growth with turnover rising 39.5 percent to Rs.21,066 crore. The earnings before interest and tax (EBIT) in the segment rose to Rs.2,422 crore from Rs.2,197 crore in the July-Sep quarter of 2010-11.
The company said had to bear higher interest costs because of higher foreign exchange difference and was able to get lower depreciation as it had sold a 30 percent stake in in 21 oil and gas blocks to global energy major BP.
Expansion of the retail business was on track, RIL said. "One of our key growth pillars is the hypermarket business. Our first prototype hypermarket was launched in Mumbai this quarter, with more to follow in the coming months.
Reliance Retail is present in about 100 cities in the country and has more than 1,100 stores in operation.
The RIL-controlled Infotel Broadband too was on track with its plans of rolling out high-speed broadband internet network.