Reliance Industries Ltd Q3 Profit dips 4.5% to Rs 5256 cr

India’s multinational conglomerate, Reliance Industries Ltd announced that its profit after tax was lower by 4.5 per cent at Rs 5,256 crore as against Rs 5,502 crore in the corresponding period of the previous year.

RIL achieved a turnover of Rs 96,330 crore ($ 15.3 billion) for the quarter ended 31st December 2014, a decrease of 20.4 per cent, as compared to Rs 121,077 crore in the corresponding period of the previous year.

Sharp Year on-Year fall in benchmark oil price of 30% was the key factor for the decline in revenue. Exports from India were lower by 21.5% at Rs 58,507 crore ($ 9.3 billion) as against Rs 74,495 crore in the corresponding period of the previous year.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said: "Our focus on operational efficiency and the superior configuration of assets helped us deliver an industry-leading performance in the refining and petrochemicals business despite sharp decline in crude and feedstock prices."

"We continued to advance our refining and petrochemicals business capital investments, which will come to fruition over the next 4-6 quarters. These investments demonstrate our commitment to creating value through the business cycle," he added.

During the quarter, Reliance Retail registered Y-o-Y growth of 19% in turnover with improved margins and profitability. The quarter witnessed heightened volatility across the hydrocarbon business.

Benchmark crude oil prices declined by around 40% through the quarter, with consequent impact on petrochemical feedstock and product prices. While headline deltas were strong, declining feedstock prices impacted buying sentiment across product categories.

Downstream converters ran down inventories, operating at minimal stock levels. RIL, in line with its operating strategy, aggressively sold down stocks to maintain optimal levels of inventory, which impacted realised deltas and margins for products. This coupled with lower holding value of closing-stock impacted performance of refining and petrochemicals businesses.