Reliance posts 33.42% hike in Q2 net profits

29 Jul '10

5 min read

Petrochemicals Business

During the quarter ended 30th June 2010, revenue for the segment increased by 18.8% from Rs. 11,707 crore to Rs. 13,903 crore (US$ 3.0 billion). Increase in volume accounted for 8.8% growth in revenue and higher prices accounted for 10.0% growth in revenue.

EBIT margins for the quarter ended 30th June 2010 were at 14.8% as compared to 18.0% in the corresponding period of the previous year on account of incremental PP production from Jamnagar SEZ which witnessed significant margin reduction over Propylene. However, on a trailing quarter basis, EBIT margins remained largely stable due to positive impact of margin expansion in PPPropylene and polyester chain which offset the negative impact of margin reduction in ethylene chain.

Due to cracker turnaround at Hazira and Nagothane manufacturing sites, the production of Ethylene decreased by 16% to 363 thousand tonnes while the production of propylene decreased by 13% to 152 thousand tonnes as compared to the corresponding period of the previous year. Polymer (PP, PE and PVC) production increased by 7% to 931 thousand tonnes due to incremental PP production from Jamnagar SEZ facility which was partly offset by lower PE production due to shortfall in ethylene. Propylene production from the refineries increased by 56% to 466 thousand tonnes primarily due to increased production from SEZ refinery.

During the quarter, production of fibre intermediates (PX, PTA and MEG) decreased by 4% to 1.1 million tonnes primarily due to planned shutdown in PX plant at Patalganga. Polyester (PFY, PSF and PET) production volume increased by 3% to 422 thousand tonnes. RIL has maintained its focus on specialty products which accounted for 59% of PSF and 44% of PFY production.

Domestic demand for polyester products increased by 10% during the quarter on account of increased non-apparel applications like home furnishing and technical textiles. Within polyester segment, demand for PET increased by 38% due to increased beverages and bottled water demand during summer season. Polymer products demand remained stable during the quarter. Within the polymer segment, demand for PP increased by 6% due to strong growth in automobile sector, cement packaging and other industrial applications.

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Reliance Industries Limited (RIL)

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