Reliance Industries net profit up by 4.45 per cent in Q1FY16

Reliance Industries (RIL) recently posted it's June 2015 quarter results. The company's revenue declined by 26.29 per cent to Rs 77130 crore in Q1FY16 on yearly basis due to lower product prices in line with lower crude oil prices. RIL’s exports of refined products from Indian operations stood at USD 5.1 billion during the Q1FY16 as compared to USD 10 billion in Q1FY15. In terms of volume, exports of refined products were 8.5 Million Metric Tons (MMT) during Q1FY16 as compared to 10.5 MMT in Q1FY15.

RIL's total expenditure decreased by 30 per cent to Rs 66953 crore in Q1FY16 compared to same period in previous financial year. RIL's total expenditure reduced predominantly due to 39.12 per cent reduction in raw material prices during June 2015 quarter.Employee costs stood at Rs 1976 crore with increment of 33.51 per cent in Q1FY16 on yearly basis due to higher payouts and on account of consolidation of Network 18 Media & Investments.

RIL reported EBITDA of Rs 10177 crore in Q1FY16 with growth of 13.22 per cent compared to same period in previous fiscal year. EBITDA margin of the company expanded by 460 basis points to 13.19 per cent in Q1FY16 on yearly basis. Its interest expense increased by 78.61 per cent to Rs 902 crore during the quarter. RIL's other income reduced by 7.19 per cent to Rs 1832 crore in Q1FY16 compared to same period in previous financial year. Thus, the  company's PBT increased by 5.08 per cent to Rs 8066 crore in Q1FY16 on yearly basis. Its net profit increased by 4.45 per cent to Rs 6222 crore in Q1FY16 on yearly basis. RIL's net profit expanded by 238 basis points to 8.07 per cent in Q1FY16 on year on year basis.

Considering the segment wise result, RIL earned 73.91 per cent revenue from Refining segment,a 22.43 per cent from Petrochemical segment, a 5.05 per cent from Organised Retail segment, a 2.21 percent from Oil & Gas and remaining 2.77 per cent from others during June 2015 quarter. The company's refining segment EBIT witnessed 37.7 per cent increment to Rs 5252 crore in Q1FY16 on yearly basis. RIL’s gross refining margins (GRM) for Q1FY16 stood at a six year high of USD 10.4 per barrel as against USD 8.7 per barrel in 1Q FY15. Strong gasoline cracks led by robust demand growth, lower energy cost and favourable crude differentials helped company to boost refining margins.

Reliance Industries (RIL) is in the business of energy and materials value chain. The Company operates in segments: petrochemicals, refining and oil & gas, Organised Retail. The petrochemicals segment includes production and marketing operations of petrochemical products which include, polyethylene, polypropylene, polyvinyl chloride, poly butadiene rubber, polyester yarn, polyester fibre, purified terephthalic acid, paraxylene, ethylene glycol, olefins, aromatics, linear alkyl benzene, butadiene, acrylonitrile, caustic soda and polyethylene terephthalate. The refining segment includes production and marketing operations of the petroleum products. The oil and gas segment includes exploration, development and production of crude oil and natural gas.