RIL profit falls for 4th straight quarter

Shrinking Refining Margins Erode Petrochem Giant's Net Mumbai: Petrochem giant Reliance Industries (RIL) reported a lower quarterly profit for the fourth time in a row due to shrinking refining margins. Its fiscal second quarter net profit declined 6.4% to Rs 3,852 crore, while turnover increased 6.1% to Rs 46,848 crore. Gross refining margins fell to $6 a barrel for the quarter ended September 30 from $13.4 a barrel a year earlier.      Decrease in prices was partially offset by higher volumes. Its refining business, the largest contributor to revenues increased 8.9% to Rs 39,564 crore in the second quarter of FY10. Revenues from petrochemicals increased 14.2% to Rs 13,340 crore during the period under review. On the other hand, revenues from oil & gas more than tripled to Rs 2,937 crore as against Rs 1,864 crore in the corresponding period last year. RIL scrip on Thursday closed at Rs 2,004 on the BSE, down 1.56% before the earnings were announced.      "The timely completion of the new SEZ refinery and the deep water, oil and gas K-G D6 block and their safe and stable ramp-up are noteworthy accomplishment for the company. These projects have contributed meaningfully in RIL achieving a record level of profits despite the challenging business and economic environment,'' RIL chairman Mukesh Ambani said in statement.      Other income was higher at Rs 628 crore during the period under review. Total expenditure increased from Rs 39,477 crore to Rs 42,063 crore during the second quarter of FY10. Early this fiscal Reliance commenced gas production from the KG D6, India's biggest field and the current gas production stands at 40 million cubic metres a day. The output is expected to increase to 60 million cubic metres, which would help the company to offset lower refining margins in a global economic downturn.      During the quarter ended September 30, five companies have already started drawing gas aggregating to five million cubic metres a day, RIL said in a statement. Profit before depreciation, interest and tax increased 18.3% to Rs 7,845 crore in the second quarter of FY10. Mukesh Ambani