Q2FY16 Reliance sales slip 33.8% from lower crude prices
For the second fiscal quarter ended September 30, 2015, revenue at Mukesh Ambani led Reliance Industries Ltd (RIL) slipped 33.8 per cent year on year, mainly from a 50.6 year over year dip in Brent crude prices.
For the second quarter of fiscal 2016, RIL achieved a turnover of Rs 75,117 crore, down 33.8 per cent from Rs 113,396 crore in the corresponding period of the previous fiscal.
“Decline in revenue was led by the 50.6 per cent year on year decline in benchmark Brent oil price,” India's biggest private sector company said in a press release.
Exports from Indian operations too were lower by 35.5 per cent from the earlier fiscal's second quarter at Rs 42,636 crore, due to lower product prices in line with lower crude oil prices.
Cost of raw materials too dropped 49.7 per cent to Rs 41,192 crore as against Rs 81,815 crore, again primarily on account of sharp decline in crude oil prices.
According to RIL, Brent oil price averaged at $50.3 per barrel in the second quarter of fiscal 2016 vis-à-vis $101.8 per barrel in the comparable quarter of prior fiscal.
However, employee costs were higher 13.4 per cent at Rs 1,786 crore in the reporting quarter primarily due to an increased employee base in its subsidiaries.
Other expenditure also fell 7.2 per cent from a fiscal ago period to Rs 8,960 crore, here too, from the impact of lower fuel prices.
Operating profit before other income and depreciation in the quarter under review fell 9.0 per cent year on year to Rs 9,818 crore.
“Strong operating performance from refining and petrochemicals business coupled with favourable exchange rate movement was partially offset by lower contribution from Oil & Gas business,” it explained.
Other income too was lower at Rs 1,596 crore as against Rs 2,009 crore in the second quarter of fiscal 2015, primarily on account of lower accruals on investments.
In the quarter, its retail division, Reliance Retail achieved a milestone of Rs 5,000 crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing.
Profit after tax including exceptional items was higher by 12.5 per cent at Rs 6,720 crore in the reporting period compared to Rs 5,972 crore in the previous fiscal's second quarter.
Consequently, basic earnings per share (EPS) for the quarter ended September 30, 2015 were Rs 22.8 as versus Rs 20.3 in the quarter ended September 30, 2014.
Outstanding debt as on September 30, 2015 was Rs 172,765 crore compared to Rs 160,860 crore as on March 31, 2015.
Cash and cash equivalents as on September 30, 2015 were at Rs 85,720 crore in the form of bank deposits, mutual funds, CDs and Government Bonds and other marketable securities.
CMD Mukesh Ambani said, “We maintained a rapid pace of construction activity during the quarter and the world-scale petcoke gasification facility and ethylene cracker complex remains on track for its planned 2016 start-up.” (AR)
Fibre2Fashion News Desk – India